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
Police investigating an attempted dog theft in Dalton near Thirsk have issued an e-fit of one of the suspects.
People are setting their festive spending budgets higher in the NE than anywhere else in the country.
After a wet start to the Christmas week things will slowly improve.