MacKellar Group has asked for state government development approval to build the new hub at a site on Torrens Road, in the town's industrial estate.

If approved, the 2.7 hectare facility would recycle as much as 250,000 tonnes of construction and demolition waste a year, from as far as Sydney.

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It would then convert it into road base and other products, according to planning documents.

The facility will also dispose of small quantities of hazardous waste like asbestos and lithium batteries.

The project's Environmental Impact Statement (EIS) said the state's capital "is already facing pressure" on its ability to dispose of its growing construction waste.

"These pressures are set to continue, with limited opportunities for new recycling or landfill facilities being established in proximity to growing urban areas, other more distant sites are becoming increasingly attractive to accommodate these uses," the EIS stated.

"This makes it economic for more distant quarries and recycling facilities in regional NSW, like Gunnedah, to be able to accommodate some of this demand through back-loading of heavy transport vehicles."

The developer said the facility would employ as many as 62 people during construction, with 30 to remain during operations.

The project is considered a state significant development, and will be approved or refused by the Department of Planning, Industry and Environment.

The proposal is on exhibition and open to public submissions, which close on February 3.

Project proponents the MacKellar Group are privately owned earthmoving, plant hire, quarrying and waste companies operating across the state, but based out of Gunnedah.