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
The Only in England photographic exhibition has launched at Palace Arts on Redcar Esplanade.
A Northumberland man who's shed nearly 14 stone in ten months hopes to take part in the Blaydon Races - something he's always wanted to do.
Crimestoppers has offered £10,000 for information in connection with the murder of Robert Hutchinson who disappeared three years ago.