Development group Paloma Ltd, which bought the plant from C6 Solutions after it closed in 2005, hopes to breathe new life into the sprawling site by building up to 1,200 new properties there.
The scheme – expected to cost more than £10m – could end years of speculation over the 100-acre Wheldon Road site's future.


Stephen Roberts, senior director at project manager CB Richard Ellis, said: "This is a long-awaited scheme to meet regeneration strategies and growing housing need.
"The town centre site has river views with access to Castleford and the countryside.
"Housing markets are tough now but with schemes like this you take a medium to long-term view."


Business Arch Chemicals and an E.on power station would stay on site if the masterplan – on show for public consultation in Castleford next week – goes ahead.
A chemical licence that creates a restricted zone around the site – blocking development – would also be removed to unlock further regeneration potential.


Mr Roberts added: "If residents don't like our plans we'll think again because this consultation is to see what they want."
Family homes and apartments would spread out from a community square in the development, which would also include wetlands, green spaces and riverside walks.
Access to the community – which would also be built partly on the site of the current Castleford Tigers' ground – would be along existing routes into the former factory.
Roger Lomas, of urban designer Taylor and Young, said: "We're trying to create a vibrant, sustainable community.


"A peninsula between the river and canal would be ideal for townhouses – it's about exploiting the waterside position to make the most of it for everyone."
Massive remediation works would be needed to clean up contaminated land before building began on homes.
If residents support the scheme a planning application could be submitted to Wakefield Council by September.
Ian Thomson, the council's service director for planning, said: "We are advising Paloma Ltd and further details – including infastructure – will be assessed when an application is submitted.


"To meet the government's targets for housing need we are looking for significant housing growth across the district.
"One outcome we would welcome is the removing of the chemical licence to release further potential for regeneration."
The masterplan will be on show at 2 Sagar Street on Tuesday and Wednesday July 22 and 23 and in Carlton Lanes shopping centre on Thursday July 24.