HITACHI Rail Europe today marked the first phase of its 730-jobs North-East train factory by announcing it will also be the site for its UK design office.

The factory 'topping out' ceremony represented a significant milestone in the £82m development, which started in November 2013 and is expected to be completed by mid-2015.

The first trains will start rolling off the production line at the start of 2016.

In the meantime, work will focus on the interior fit-out of the facility, which has already started.

Today's ceremony was hosted by Keith Jordan, Managing Director of Hitachi Rail Europe, Michael Chicken CEO of Merchant Place Developments, and Mark Perkins, CEO of Shepherd.

During the event, Mr Jordan announced that Hitachi Rail Europe had decided to establish its UK design office in the new facility.

The design office will initially comprise of 12 staff, with four design engineers already on board and the remainder of roles now advertised on the Hitachi Rail Europe website.

Initially, the team will be tasked with interior design work for the AT200 trains, including the trains destined for the ScotRail franchise. The future size and scope of the office is dependent on future workload.

Rail Minister Claire Perry MP said: “The new factory at Newton Aycliffe will benefit the North East’s economy for years to come, creating hundreds of jobs and apprenticeships and showcasing the fusion of British and Japanese engineering excellence. It is great to see railway industry jobs returning to the North East, home of the Stockton-Darlington line where Britain’s railway journey began.”

Mr Jordan, said: “Today’s topping out ceremony signifies a milestone in the construction of our Vehicle Manufacturing Facility in Newton Aycliffe. This is no longer just a concept - everybody can see for themselves the sheer scale of the site that will act as the hub for our rail manufacturing work in the UK and across Europe.

"With the establishment of our Design Division, we further enhance professional opportunities and our commitment here in Newton Aycliffe and the North-East .

"This will be our UK and European rail centre, where we design and build trains for Great Britain and the rest of Europe.

“I would like to thank Merchant Place Developments, Shepherd Construction, Network Rail and the many suppliers for all the hard work they’ve put in over the last year to reach this stage, and am now looking forward to the final completion in 2015.”

Mr Perkins, said: “Countless dedicated and highly skilled people, across the entire supply chain have been responsible for getting us to this important stage in the development of Hitachi’s new manufacturing facility.

“We’ve brought together the very best construction and engineering talent from across the North East to work collaboratively on this landmark project, which is set to transform Newton Aycliffe into a European rail manufacturing hub. There’s still a lot of work to do on site, but I’m pleased to say we’re on track to deliver a truly world-class facility next year.”