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
Richard Kilty and Laura Weightman are among four North East competing for Great Britain at the World Athletics Championships in Beijing
Teen charged with planning mass murder at former college defends keeping stash at home and says: "I wasn't going to ******* shoot anyone".
Patient thanks the Great North Air Ambulance Service who quickly treated him and flew him to hospital.