CoreHaus's 20,000 sq ft factor in Seaham, County Durham, is initially employing about 20 people but expects to grow to 100 once the firm reaches its optimum production volume.
The factory will produce light gauge steel frame homes suitable for both urban and rural environments. A variety of different elevation treatments and a modular core that can configure two to three-bedroomed homes will be manufactured.
Scott Bibby, Managing director, said: "We already know there is interest and demand for our innovative product. The housing sector is screaming out for something that's both affordable and incorporates high-quality design within a modular frame."
Mr Bibby added the product differed from other modular designs because it was a combination of being part modular but with a standard engineered core.
Modern methods of construction champion, Mark Farmer, who spoke at the launch, said: "I get to open a lot of factories but this one feels very different to me. The product is very different to many modular homes; it's a hybrid modular home with its pod and panel approach."
First homes to be in the northeast
CoreHaus has agreed to provide its first homes to Homes by Carlton's Thorpe Thewles site in County Durham and claims to have an order book of £6m.
Mr Bibby said the firm was taking advantage of Homes England's decision to ask strategic partners to deliver a quarter of their homes using modern methods of construction.
Brokers Hank Zarihs Associates said lenders were keen to offer property development funding to SMEs keen to explore innovation in building techniques.
