"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 the forecast for the Tyne Tees region.
A Tyneside food bank has been ranked as the busiest in the UK. The Newcastle West End branch fed almost 22,000 people in six months.
A special tree planting ceremony took place in South Tyneside today (November 25) to acknowledge victims of domestic violence.