The area planning board approved the detailed application submitted by Stocksbridge Regeneration for a new testing facility for the town’s steelworks. The consent also includes new car parking and the relocation of one of Tata Steel’s despatch facilities to the company’s main site.

These plans form part of a wider mixed-use retail and office development in Stocksbridge, North Sheffield, being brought forward on a former industrial site opposite the Tata Steel steelworks.

A further application for 140 houses is also due to be considered by the planning board next month.

Work is scheduled to start on the development site next year which will also be home to a 63,000 sq ft food store as well as small shops.

Development partners Dransfield Properties and Gallagher Developments welcomed the council’s decision to allow development of the redundant industrial site.

The 15 acre site is made up of land now cleared by Outokumpo as well as the Tata Steel despatch facility which is being relocated.

Retail property director for Dransfield Properties, Andrew Malley said: “This is an important step forward in the delivery of our plans for Stocksbridge and we are delighted that this next stage of work has been approved by Sheffield City Council.

Relocating the steel despatch facility releases an important part of the site and the plans for the new test house have created a great opportunity to design a really impressive landmark building.”

Mark Broxholme, general manager of Stocksbridge-based Tata Steel Speciality, said: “As the town’s largest employer with 800 employees – the majority of whom live locally – we want to be part of the regeneration of Stocksbridge.

“There is still some work to do with the relevant authorities to ensure these plans fit into our ambitions for the steelworks. But we will continue to work with the developers and the authorities to secure the best deal for Stocksbridge and to continue to develop a sustainable steelworks in the town.”