The government has confirmed a £4.5 billion pound Hitachi contract will be used to build the next generation of Britain's Intercity Trains.
A new factory will be built at the site in Newton Aycliffe, County Durham, which will manufacture 92 high capacity trains to replace the existing Intercity 125's.
The contract will create 900 new jobs in the area and thousands more in the supply chain.
Hitachi has also confirmed that a Research and Development centre will also be based at the Newton Aycliffe site which could help the firm to secure more European rail contracts in the future.
More top news
Kerrie brings you Saturday night's forecast for the Tyne Tees region
North Yorkshire Police say they have arrested 41 people in the first nine days of this year's drink and drug driving campaign.
Gusty winds over hills. Mainly dry with a cooler night ahead