More than 300 homes are poised to be built on the site of Walsall’s landmark Caparo factory after the scheme won the support of planning chiefs.

The decision to back the long-awaited scheme means that the 85,000 sq ft former engineering site in Old Birchills could soon be transformed.

It has been empty for more than four years.

The decision leaves the path clear for the firm which owns the £5.7 million land between the Wyrley and Essington Canal and Miner Street and Green Street to appoint a developer.

Engineering had taken place at the site for more than 100 years when Caparo Tubes, part of the larger Caparo Group, left the site in 2005, followed by neighbouring Barton Engineering a year later.

Sources at Oldbury-based Caparo Industries Plc today said there had been “interest” in the historic site, but that they were keen to officially secure planning permission before making any comment.

Planning chiefs have recommended that Walsall Council development cont-rol committee gives the final seal of approval on Thursday.

Caparo has agreed to contribute more than £1 million to schools and road improvements in Walsall.

Councillor Joan Barton, who sits on the planning committee, said she was pleased to see evidence of a revival in the residential development market.

“Obviously this will have to be decided on its merits, but hopefully it shows things are picking up again,” she said.

“The factories on the site used to be very busy, with hundreds of people working there, but unfortunately that’s all gone now. When it’s clear employment is finished on a site, it’s good to see plans to put it to use.”

The land has already been cleared after it fell prey to vandals while out of use.

The matter will be decided during the planning meeting at the town hall on Thursday, starting at 5.30pm.