Domaine Faiveley insists its new winery will be one of the most beautiful in all of Burgundy.

The estate has now started work on its €5 million (£4.2 million) facility, which has been designed by Jean-Frederic Luscher - the man behind the ultra-modern Dominus in California's Napa Valley.

Standing next to the existing Faiveley property, the new winery will have a capacity for 90 hectares worth of grapes and will house ten 70-hectolitre oak fermenters, Decanter reports.

"It will bring a new image to Mercurey. It will be in the Burgundian style and but will fuse the classic and the modern," Erwan Faiveley, the head of the major Burgundy producer, told the publication.

Refreshing the image of the Mercurey holdings is one of the key reasons for taking on the project, but the scale of the building allows them to expand the vineyard from the current 70 hectares.

"We have the possibility to plant another 20 hectares, so we will need more capacity in the future," he explained.

The new building should be up and running and ready to start processing by the summer of 2013.

Domaine Faiveley is already one of the largest producers in Burgundy, with 80 per cent of the wines bearing its label coming direct from its own vineyards.

In total, the firm owns 120 hectares of Burgundy real estate, featuring ten Grands Crus in Cote de Nuits and Cote de Beaune and five Monopoles.

Domaine Faiveley’s Vincent Avenel recently suggested that his estates 2010 wines are a much better expression of the estate's terroir that their predecessors, saying: "2009 was good for entry level wines as you got more for your money.

"Where it was less good was for terroir expression and ageing potential. This year, 2010, is more classic, more serious."