"We want to establish ourselves as a key British train maker and this factory is a huge step towards doing that.
"In just 18 months, what stands today as an empty field will become home to a state-of the-art facility, manufacturing trains for Europe and the UK.
"This investment will secure employment for more than 150 workers and many more from the supply chain.
"The majority will be from County Durham and the North-East. Shepherd won the tender to build the plant against strong competition and we look forward to working with them and Merchant Place Developments."
More top news
In a statement, victims of Colin Gregg have told of their ordeal at the hands of the paedophile who claimed he inncocent
After a mild day for the UK temperatures will hold up overnight - but what will tomorrow bring.
Police and NSPCC have praised Gregg's victims for their bravery and urged any others to come forward