THE Prime Minister and the Chancellor welcomed the return of rail manufacturing to its origins in the North-East of England by visiting the new £82 million Hitachi factory.

View more pictures from the launch of Hitachi's new £82m factory

The plant in Newton Aycliffe, County Durham, will directly employ more than 700 people making trains for the East Coast Main Line, the Great Western Main Line and commuter trains in Scotland.

Full production at the site, which is the size of 20 football pitches, starts next year and the trains it produces will be larger and more comfortable than current rolling stock, the firm said.

The Northern Echo:
The Class 800 train that will be built at the Newton Aycliffe factory

Mr Cameron said the new factory was "effectively bringing train manufacturing back to the North East".

Speaking to some 500 guests at the official ceremony, he said: "In the past few years we have seen the North East on the rise. That is happening because great businesses like Hitachi have confidence in this area."

George Osborne also attended the ceremony, having earlier been to the Nissan plant in Sunderland where bosses announced it will invest £100m in building its new Juke model, securing 34,000 jobs.

Mr Osborne said it was a "double dose of good news", adding: "Today we see a major boost for the UK with Hitachi investing millions in returning train manufacturing to the North East.

"This state-of-the-art facility will grown and secure jobs for decades to come and will help us to build the Northern Powerhouse while at the same time revitalising one of our oldest industries in the region within which this tradition is synonymous."