Demolition work has started on site of Redcar's new £8.3m 'Hub' for the creative industry, which will bring about the transformation of the town's derelict Palace Theatre.

Surgo Construction has been chosen by Redcar and Cleveland Borough Council (RBBC) to oversee the two-month demolition phase, with construction work to start in the autumn. Newcastle-based xsite architecture are involved with the project, which will lead to the creation of a new space featuring studios, workshops and a showcase for artists to display and sell work.

RBBC cabinet member for economic development Mark Hannon said: "This exciting new base will allow the creative industry in the area to flourish and create different career options for future generations." Dave Ramrekha, creative director of Via Creative, added: "We believe the development of the new Hub will prove to be an attractive proposition for both traditional artists, existing businesses and new creatives looking to relocate into the area."