LEMA is moving out of its Dudley College base and into the new complex on Cinder Bank, Netherton, after a four-month transformation starts in April.
The company said demand from local engineering companies for apprentices had seen it run out of room at its base behind the main college building on Broadway.
LEMA – the Lean Engineering and Manufacturing Academy – has seen huge growth in demand over the last two years.
Director David New said: “Just under two years ago we probably had 45 apprentices across the West Midlands with various employers. As it stands today we have 200.”
Staff numbers at the firm have also grown, from six to 25. LEMA opened a 20,000 sq ft training academy in Birmingham last year, in Lower Tower Street.
The company is training 140 young engineering apprentices, aged 16 to 18, this year at Dudley and expects this to rise to 200 in the first year the new academy at Cinder Bank is open.
New added: “I am an ex-engineer and a former apprentice myself and I am passionate about the importance of training young people.
"Engineering and manufacturing are key industries in the Black Country but companies desperately need fresh blood.
“We work very closely with companies to make sure our apprentices have the skills and the right attitudes that employers require.
"We ensure all our apprentices are employed by a local company, and they all go through a six-week foundation course to ensure they have the life skills they need to meet their employer’s expectations.”
The new £200,000 14,250 sq ft academy, will double the size of LEMA’s current operations in the town.