"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
A look ahead at a wintry weekend forecast.
More than £40k has been raised to help Alan Barnes, a disabled pensioner, relocate after an attempted mugging outside his house.
Over 30 airports were nominated in for Top UK airport, but a satisfaction rating of 86% saw Newcastle Airport claim the top spot.