"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."
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Kerrie Gosney brings you Sunday night's forecast for the Tyne Tees region
The remains of Hurricane Gonzalo will reach the UK on Monday night, bringing a period of strong winds and heavy rain to the UK.
An unsettled week with showers or rain and some very strong winds. There's a Met Office warning for gales as we head into Tuesday