Diageo will transfer 40 jobs from nearby Carsebridge to the new site
Drinks giant Diageo has started construction work on a £10m cooperage at Cambus in Clackmannanshire.
The company is building the barrel factory, which will employ about 70 people, in a move that will see the site become the firm's cooperage base.
It will replace their existing factory at nearby Carsebridge and see 40 jobs transferred to the new site.
The project comes after Diageo said in 2009 it was cutting 900 jobs at its Kilmarnock and Glasgow sites.
The company, which is known for names like Guinness and Johnnie Walker whisky, said it would also be relocating some roles from its Dundashill cooperage in Glasgow to the new Cambus site.
Diageo Scotland managing director Bryan Donaghey said: "As a business it is vital we remain globally competitive and developments like this play a fundamental role in securing the long-term sustainability of our operations in Scotland.
"The new location provides better logistical benefits and allows us to further upgrade our operations.
"It also reinforces the company's commitment to keeping alive and support the craft of coopering which remains an important element of whisky production."
The firm said the new cooperage was likely to be operational by 2011.
Diageo is one of the area's biggest employers with a coppersmith workshop in Alloa and a European Technical Centre and Archive in Menstrie.
Their bond at Blackgrange is the largest warehouse complex in Europe, holding about three million casks.