Local service providers Force Equipment, WesTrac and Komatsu were jointly awarded a A$35 million (US$25 million) service contract to conduct maintenance on Fortescue's heavy mobile equipment in Port Hedland.
Previously, the vehicles and machinery were transported to Perth for repairs, which was a 3,200km return trip.
"Fortescue is committed to creating economic opportunities in the Pilbara through engagement with regionally based businesses and supporting local jobs," CEO Elizabeth Gaines said.
"Thriving businesses are fundamental to the economic prosperity of our communities and basing the maintenance of our heavy mobile equipment in Port Hedland is a very practical, common sense approach that has significant benefits for our community."
She also said that in the last financial year 6% of the company's procurement spend was with local Pilbara businesses.
Town of Port Hedland mayor, Camilo Blanco, said he was "pleased Fortescue has awarded their MCORS contract to three Hedland-based businesses, helping to support local jobs for local residents".
The MCORS contract will create 17 full-time, local jobs.
Force Equipment, Westrac and Komatsu each have a longstanding presence in the Pilbara and have collectively invested over A$20 million in local infrastructure and purpose-built facilities to deliver the services and spend A$15 million per year with local suppliers.