Stocksbridge Regeneration has had its plans for new Tata Steel facilities on the edge of Sheffield backed by the city council.
The Dransfield Properties and Gallagher Developments vehicle plans to build a new testing area on a former industrial site in Stocksbridge.
It will be part of a wider office and retail development in the area, north of Sheffield. Dransfield also has an application for 140 homes due to be looked at by council planners next month.
A detailed planning application put in by Stocksbridge Regeneration has been approved by the West and North Area Planning Board.
The plans include new car park facilities and a plan to move the dispatch area of Tata Steel Europe, which was formerly Corus. There will be pedestrian walkways so people can walk from the main Manchester Road to the development on the former site of a steelworks.
Dransfield Properties plans to start work on the redevelopment next year, with a 5,900m2 supermarket and more shopping space planned.
The main scheme for the six hectare site was given full planning permission by Sheffield City Council in 2009.