This announcement has been described as bigger than the arrival of Nissan thirty years ago.
The adjoining councils of Sunderland and South Tyneside have been awarded a City Deal, aimed at bringing thousands of jobs to the area.
The Government scheme unlocks millions of pounds for the two local authorities to create the conditions for investment.
A key part of the scheme is the creation of a new business park north of the Nissan site. The International Advanced Manufacturing Park will straddle the Sunderland and South Tyneside border, and aims to create more than 5,000 jobs by 2027.
The plan is to provide a site where automotive suppliers can be based, alongside off-shore and other high-tech businesses.
The announcement was made by the Deputy Prime Minister Nick Clegg, during visit to Nissan.
Mr Clegg said the new plan builds on what he called the 'astonishing success' of Nissan and would create a 'web' of companies to fit into its supply chain.
I asked Mr Clegg what evidence there was that so many jobs could be attracted to the park:
– Nick Clegg MP, Deputy Prime Minister
The evidence will of course be that it actually happens. These are the projections made by the local companies, the local authorities, the Local Enterprise Partnership whose idea this is. It's really important to remember this: this isn't some idea that's been dumped on the North East from some faceless official. This is part of the City Deal process which I have been championing in Government where we basically invite places like Sunderland and South Tyneside to say tell us what you want, tell us how we can help you with your plans for the future."
The arrival of Nissan in the mid-1980s marked an important new phase in the industrial history of Wearside.
Sunderland's deputy leader, Cllr Harry Truman, believes the new business park has even greater potential due to the number of jobs that could be created.
– Cllr Harry Truman, Sunderland Deputy Council Leader
"We're keeping very conservative at the moment, five and half thousand jobs, but I think it will be more than that, and quality jobs as well."
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