Work begins with local contractors on medicinal cannabis facility near Collie.

"The medicinal cannabis industry is rapidly growing and Western Australia is well placed to compete in that industry." - Regional Development Minister Alannah MacTiernan.

Work has begun on a medicinal cannabis facility near Collie, W.A.

Cannaponics Limited is creating a cultivation, extraction, processing and distribution facility for the rapidly growing medicinal cannabis industry.

The McGowan Government has allocated $2 million from the Collie Futures Industry Development Fund to support the project.

Cannaponics' 160-acre property will be the home to a 3,600sqm greenhouse and a 2,000sqm manufacturing facility.

Cannaponics will create approximately 50 jobs during the 12 months of construction, and is expected to become a multi-million dollar enterprise, with flow-on effects to benefit Collie's economy.