The NSW Government has approved a $130 million industrial development at Tomago near Newcastle, including a state headquarters for global machinery company Caterpillar.

The major investment project by Redlake Enterprises Pty Ltd will happen in three stages.

First, a service facility will be established for WesTrac, which is the NSW distributor for Caterpillar, as well as a Caterpillar Institute for the training of apprentice equipment mechanics.

That will be followed by development of related WesTrac facilities including an equipment demonstration area, followed by an industrial park to be occupied by other businesses including Caterpillar equipment hire company National Hire.

A government inter-agency group chaired by Industry & Investment NSW helped Redlake Enterprises with site due diligence issues and worked to resolve issues including site filling, traffic management, flora and fauna studies, services extensions and power line relocations.

WesTrac, which is one of the largest Caterpillar dealerships in the world, expects to create about 400 new jobs, including initially 200 apprenticeships, in Stage 1.

As well as the NSW headquarters for Caterpillar, the Tomago site will include distribution, maintenance and training facilities for 400 apprentices.

Substantial further job opportunities will result from the future establishment of the wider Tomago industrial subdivision covering over 115 hectares.

About 910 jobs will be created during construction work at the Tomago site with flow-on benefits for the Hunter community..

WesTrac Pty Ltd Managing Director Mr Jim Walker said : WesTrac is looking forward to our transition to Tomago where we can train and educate our employees, customers and future leaders and improve our customer delivery and service to the area.

WesTrac and Caterpillar have significant growth plans which will further enhance the employment opportunities in and around Tomago.