AE Harris was established in 1880 and has occupied its current site since 1964. It now employs 37 people. The firm has more than 100,000 sq ft of space in 11 buildings, but operates from just a third of the site.
The engineering business is planning to move to new premises in Frankley before the end of this year.
Russell Luckock, chairman of AE Harris, said: “In the decades following our move to Northwood Street in 1964 we acquired neighbouring plots to accommodate our growing business. However, today’s modern manufacturing methods mean we no longer require all this space and many of the buildings have become surplus to our requirements. Being in the middle of a bustling city centre is also no longer necessary or ideal for our operations.