One of the largest listed buildings in Suffolk is to be transformed as part of a major new £20million project which is set to create jobs and provide new homes.

The former Fisons site in Bramford has received planning permission for around 170 homes – with 25 jobs to be created at a new business centre. More than 330 employees will then be expected to work from the centre for existing or new firms.

Kathie Guthrie, chairman of a Mid Suffolk District Council planning committee, said all but one councillor had backed the application.

“It’s an unbelievable site; what a piece of engineering for its time but it’s in a very dilapidated state which is a great shame,” she said.

“It’s going to have a very innovative design and I think it will be a showpiece for Mid Suffolk, I really do.”

The wooden-clad Grade-II listed Victorian factory building has been disused for several years and will be renovated.

It will become a business centre which will also include a restaurant. More modern parts of the factory, in Paper Mill Lane, will be demolished.

Mid Suffolk had identified the site as needing investment – with planners describing it as “derelict and unkempt” in appearance. This is something which “detracts” from the area, according to planning documents.

Mrs Guthrie said although the proposals had been “thoughtfully” dealt with by Mid Suffolk planners and Paper Mill Lane Properties Ltd, the company behind the plans, there had been highways issues.

Suffolk County Council’s highways team had initially objected but reversed that position after receiving updated plans which have reassured their safety concerns.

Outline permission for around 70 homes and full permission for about 100 properties have been approved by Mid Suffolk.

The factory, on the 12-acre site near Ipswich, was one of the world’s first to produce fertiliser.

No-one from Paper Mill Lane Properties Ltd was available to comment on the proposals.