Mining conveyor and materials handling company Nepean Conveyors will open a new factory in the Illawarra region.
It will lease a plant formerly owned by Orrcon in Unanderra, according to the Illawarra Mercury.
This new manufacturing facility will create around 55 new jobs.
The development is a move back to where the company started, as it was established the nearby town of Picton more than 25 years ago, and has since branched out around Australia and into South Africa.
In January Nepean announced it was constructing a new $50 million manufacturing plant in Mackay to support the region's burgeoning coal industry.
The 5.8-hectare Mackay facility will have dedicated lines set up to manufacture conveyors, transfer stations and other mining related infrastructure.
Nepean managing director Rolf Van Rooyen explained that the new "Unanderra factory will serve as a design, manufacturing and project management headquarters for conveyor packages".
Its existing Picton site will be used to maintain equipment, while its other facility at Narellan will be used for engineering.
Recruitment has already begun at for the Unanderra site.
Ai Group regional manager Leanne Grogan told the Mercury this latest development was encouraging.
This "is great news and every manufacturing job creates another three jobs," Grogan said.
"It’s even better that it is supporting the mining industry because the multiplier effect in that sector is five to one."