Ravenscraig is expected to attract about �1.2bn in investment

Builders moved into the 1,100 acre site in North Lanarkshire to lay the foundations for a 20-year redevelopment project, which will create a new town.

Phase one will cost �200m and see the creation of 820 homes, a SportScotland regional sports facility and a new campus for Motherwell College.

The first houses are expected to be finished by June 2008.

Remaining buildings could be completed by 2010.

Work started less than two months after the House of Lords threw out an appeal against granting Ravenscraig town centre status.

Rival developers feared the new development would undermine town centres in Motherwell and Wishaw.

Up to 3,500 homes, parks, schools, a railway station and nearly 60,000 sq m of retail space will be built at Ravenscraig.

The whole project is expected to create 12,000 jobs.

Tony Greig, commercial manager of Wilson Bowden, which is a member of the Ravenscraig Partnership, said: "The start of work represents a significant milestone in the regeneration of Ravenscraig."