Shrewsbury's historic Flax Mill Maltings has received a grant of £12.8m from the Heritage Lottery Fund (HLF) to support the conservation and redevelopment of the world's first iron-framed building, it has been announced.

The funding will be put towards the first phase of the redevelopment of the Flax Mill Maltings site, which will restore and bring back into a third century of productive use some of the main historic buildings on the site, including the Main Mill – which is the world's first iron-framed building – the Kiln, the Dye and Stove House, and the Office and Stables.

Space will be opened up for commercial and community use, including exhibition space for visitors to learn about the building's place in social and international history.

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Work is set to begin on site in October 2013 and be completed in early 2016, meaning that the site could be open to the public, and be the workplace for hundreds of people, by spring 2016.

Situated on the northern edge of Shrewsbury, the internationally-important Flax Mill Maltings site reflects a time when Shropshire led the way in engineering innovation. It comprises seven listed buildings, including the Main Mill, which was built in 1797 and is the world's first iron-framed building and the forerunner of the modern skyscraper.

The site was a flax mill from 1797 until 1897, and then a maltings until its closure in 1987.

The bid was submitted by a partnership of Shropshire Council, English Heritage, the Friends of the Flaxmill Maltings and the Homes and Communities Agency (HCA).

Reyahn King, Head of HLF West Midlands, said: "The listed buildings at the Flax Mill Maltings encapsulate the very best of British innovation and excellence in engineering and as the forerunner of skyscrapers the Main Mill is of international architectural importance. Shropshire Council's plans are now set to transform this historic site into a centre for learning, leisure and business enterprise.

"I can't think of a better use of Heritage Lottery Fund money than to celebrate and reuse our industrial past in such a well-thought out and exciting project."

(CD/JP)