The old ACL Bearing factory in Launceston will reopen, with 40 workers re-employed by the new owners.
The Advocate reports that the factory closed a year ago after the company was put up for sale in 2013.
The site will operate under a different name, ACL Bearings Australia, and export mainly to North America.
"ACL has re-emerged under innovative new ownership because of ongoing international demand from high performance engine platform manufacturers for the high-quality bearing product produced at the Launceston plant," said federal Liberal MP for Bass, Michael Ferguson.
The ABC reports that ACL was established in 1937, had previously supplied to Ford, Holden, Toyota and Mitsubishi, and had employed thousands.
The automotive downturn had however been difficult for the company, and it went into receivership in 2009.
The new operation will primarily export to North America.
“…ACL distribution in Michigan have acquired the assets and the IP (intellectual property) and the equipment," new general manager Chris Brooks told the ABC.
"We'll be much smaller, niche focussed and a lean manufacturing facility than before.”