The NSW Government has secured the sale of Newcastle-based company Waratah Engineering saving 120 local jobs.

Waratah Engineering was in administration and facing possible liquidation, but will now be purchased by Polish company Zabrzanskie Zaklady Mechaniczne S.A. (ZZM).

The Government helped secure Waratah Engineering with an assistance package provided by Industry & Investment NSW, together with efforts by the administrator and Kopex's local business advisors.

Minister for State Development Ian Macdonald said: "This sale is a win-win situation, for Waratah Engineering, Kopex S.A., and the Hunter economy.

"This assistance means local jobs are safe – engineers, draftsmen, electricians, mechanical fitters, machinists, boilermakers and about 15 trade apprentices and trainees in business administration, distribution and warehousing."

ZZM expects to not only maintain the existing Waratah Engineering workforce but create further local jobs through the capturing of new business opportunities, both within Australia and selected international markets where ZZM has a significant presence.

Minister for the Hunter Jodi McKay said Waratah Engineering, a specialist supplier of underground coalmining and tunnelling machines for the Australian and New Zealand markets, has history in the Hunter extending back to 1923.

"Growth costs and investments in product research and development have left Waratah Engineering in dire financial straits following the collapse of an equity deal, forcing it into administration in July this year," Ms McKay said.

"Without Government support Waratah Engineering faced closure, the loss of over 120 jobs, and the killing off of strong opportunities for future growth and expansion."