Penderyn Whisky has been given the green light – and £3.75 million – to expand the business by building a new distillery and visitor centre.

The Welsh producer intends to redevelop a disused building at the historic Hafod Morfa Copperworks site in Swansea.

The lottery Heritage Fund recently awarded £3.75 million towards regenerating the 19th Century Powerhouse building into the visitor centre and distillery.

As part of the restoration Penderyn will replace the clock tower and it will also build its new Visitor Centre alongside and to the rear of the Powerhouse. This new facility will be set over three floors, and it will include a Penderyn Whisky exhibition centre, shop, a tasting bar, conference suite and an exhibition covering the history of the old Copperworks.

Stephen Davies, Penderyn’s chief executive, said: “Penderyn is delighted to bring back a copper-based industry back to this area. Once opened we hope to see up to 100,000 visitors a year, and it will become one of the major attractions in the area. This all helps us promote our whiskies from Wales to the world.”

Construction is expected to begin at the end of this year with plans to open in 2022.

Wales currently has four working distilleries for whisky, including Aber Falls Distillery in Abergwyngregyn, North Wales; Coles Family Distillery in Carmarthen; Penderyn Distillery in Merthyr Tydfil; and Da Mhile Distillery in Llandusul.