The unnamed new owner of the former UGL Rail factory in Taree was a global business and would create as many as 400 local jobs, according to the local council.
The ABC reports that the Greater Taree City Council’s general manager, Ron Posselt, said the new purpose the currently mothballed factory would be put to would involve “heavy niche manufacturing”.
"It's something that we've been very good at in the past, and I think that we need to position ourselves well," he told the ABC.
"The manufacturing of heavy items for trains in particular is an up and down business, because it relies on very big contracts," he said.
"But all the discussions we've had with the new owners, indicate they are involved with the biggest players in world.”
The Manning has lost 1,500 jobs in the last three years. The UGL factory shed about 130 jobs when it was put in care and maintenance in October 2013.
There had previously been hopes the site could be used for the assembly and maintenance of “off-the-shelf” trains announced last year by the NSW government.
UGL runs factories in Broadmeadow, Chullora, Spotswood and Bassendean.