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Cementation Skanska already employs 170 staff on the site and says its modernisation programme will create another 72 jobs during the construction work.
The project, which is backed by a 1.28m grant from the Government's Regional Growth Fund, aims to create a hub for Skanska's business in the north of England that will have almost zero impact on the environment.
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Managing director Martin Pedley said: "Our business has been operating from this site for almost 100 years, so we have a long history of providing training and employment to the local community.
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Specialist piling and ground engineering subcontractor Cementation Skanska has started work on an investment programme that could create 62 permanent jobs at its site in Bentley, near Doncaster.
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6m hub work begins
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"The new facilities will provide a modern facility for engineering, manufacturing and pre fabrication of products for the construction industry."
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