The Grade II listed building on Locksbrook Road has been empty for over five years and will now be transformed into the new Bath School of Art and Design.
Willmott Dixon will deliver major internal and external alterations to the factory including new cladding, a roof top pavillion adding a third storey and removal of an internal mezzanine to create more open space.
Grimshaw Architects, which designed the original building in 1976, has now designed the overhaul with Arup providing both structural and building services design.
Bridewater-based Gworks Construction is now on board to deliver groundworks.
Plans for the building include modern teaching facilities, practical workshops, studios, a gallery space, as well as a café and art shop.
Professor Anita Taylor, Executive Dean of Bath School of Art and Design, said: “Heritage, environmental solutions and sustainability are at the heart of both Bath Spa University’s and Willmott Dixon’s approach to this project and we are delighted to be working with them on our exciting new building.