Work on constructing a household waste recycling centre at Badentoy, Portlethen, started on Monday, 7 December.
Local councillor Ian Mollison said: “This is welcome news as it has taken many years to get to this stage.
“There have been various reasons, particularly the challenge in identifying a suitable site in the Portlethen area. I look forward to the opening next year.
“Morrison Construction hope to have the works completed by the end of July 2016, but council officers have rightly pointed out that this will of course be dependent on the weather during the winter.”
The recycling centre will be to the north of the industrial estate.