The firm has teamed up with local firm Trackwork after long-term precast sleeper maker Tarmac served Network Rail with notice to quit supply at the end of its present contract.

The factory on the former Woodyard site will be owned and funded by Network Rail but operated by Trackwork Moll.

At present Cemex and Tarmac supply the country’s sleepers. Network Rail said it was backing the factory plan to increase competition and introduce modern production methods.

Martin Elwood, director of Network Rail National Delivery Service, said: “This factory is crucial if we are to deliver better value for money while maintaining a safe, reliable railway.”

He added: “We need around 700,000 concrete sleepers each year and, once commissioned, this factory will produce around 400,000 of those. It will also directly create around 30 new jobs, with knock-on benefits to the local supply chain.”

Construction is due to start this month with full production due to begin in Spring 2013.

Moll operates three factories in Germany and one in Poland. They were one of the early pioneers in developing concrete sleepers and claim to have manufactured more than 10m of them.