"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
The threat level has been raised to critical by MI5's Counter-Terrorism Analysis Centre.
Prime Minister Theresa May announced the decision from Downing Street.
Newcastle Central Mosque is welcoming Muslims and non-Muslims alike this evening to stand in solidarity with the people of Manchester.