The Chubb factory, in Ferndale, Rhondda Cynon Taff, shut in 2004 with the loss of 154 jobs when manufacturing was moved to China.
Since then, the site at Maerdy Industrial Estate, has remained empty.
Planners recommended approval saying the development would improve the area.
The plans by Garrison Barclay Estates Ltd, set to be decided at a meeting on Thursday, include proposals for a mix of terraced, semi-detached and detached homes as well as flats.
Mixed-use shop and residential units could be also be built next to A4233, while industrial units could be built and accessed through the existing industrial estate.
Some residents have raised concerns including, fears over increased traffic, the impact on the availability of GP services and concern over how the development will look.
While plans for homes on industrial land go against planning policy, a report to the council said it was acceptable given no plans for purely industrial or commercial purposes had been put forward since the factory shut.
It added the Rhondda Fach area had seen little investment and few new housing opportunities in recent years, which also went in favour of the application.
The Chubb factory first opened as the Pyrene company in 1950 and operated on the site until its closure.
The derelict site of a former fire extinguisher factory which has been unused for 12 years could be redeveloped for 172 new homes, shops and industrial units.