Workers and business leaders full-steam for return of train building in the Hunter

Returning train manufacturing to Cardiff will further future-proof the region's economy with skilled jobs and industry capability, Hunter business representative Bob Hawes says.

The Newcastle Herald revealed on Thursday that the state would open two Tangara production lines at Downer's Cardiff facility to extend the life of the fleet.

It has been 40 years since the trains were built in the region.

The state's plan is expected to create 100 jobs and 20 apprenticeships, and rebuild the the Hunter's train manufacturing workforce that was dismantled when rolling stock building was moved offshore by the former Coalition government.

"Manufacturing skills developed through programs like this are highly transferable - supporting opportunities across other industries including defence, mining, infrastructure and emerging clean technology industries," Mr Hawes, the CEO of Business Hunter, said on Friday.

"These are precisely the kinds of skills that can move across industries, enabling the Hunter to adapt and lead as our economy continues to diversify."

The $447 million Tangara life extension program will extend the life of 55 eight-carriage trains by more than a decade by replacing internal cladding, the computer operating system, installing more accessible emergency help points, emergency door release, passenger visual displays, upgrades to the passenger address system and CCTV.

The state government unveiled the first refurbished train in November last year as it embarked on a drive to hire hundreds of mechanical and electrical workers to keep the stock on the tracks for another decade.

At the same time, the Minns government promised at least half of a projected new fleet to replace the Tangara trains would be made in the state.

"The Tangara Life Extension Program will keep skilled tradespeople, engineers and technicians working locally while also creating clear pathways for young people through apprenticeships," Mr Hawes said, adding that the government announcement highlighted the strength of the Hunter's manufacturing supply chain and the importance of sustained investment.

Manufacturing union state secretary Brad Pidgeon said returning train building jobs to the Hunter was a "long time in the making", however, he welcomed the announcement.

The former government's prioritisation of offshore manufacturing had "tangible social and economic consequences for the region", he said, but described this week's announcement as "a step towards rebuilding capability".

"A long period of neoliberal government in NSW has hollowed out our rail manufacturing industry. We have the ability to build good, fit-for-purpose trains here in NSW, but every opportunity for us to do so over the past 13 years has been sent overseas," he said.

The NSW and ACT branch of the Australian Manufacturing Workers' Union, which Mr Pidgeon represents, said it was now incumbent on Downer to deliver a fair working agreement for employees, currently engaged in industrial action.

"We need to get a deal done so we can get back to building the future of rail manufacturing in the Hunter," Mr Pidgeon said.