THE return of train building to the North-East can act as a catalyst to bring thousands of jobs to the region, the Government and campaigners said last night.

Transport Minister Justine Greening yesterday travelled to Newton Aycliffe , County Durham, to approve a £4.5bn Hitachi project to build the next generation of intercity trains.

After months of delay – which sparked fears that the deal would be cancelled or scaled back – Agility Trains, a consortium made up of Hitachi and John Laing, has been given the go-ahead. The factory will create 730 skilled jobs – hundreds more than had been planned originally – with a further 200 workers needed to build the test track and the plant itself. It will also secure and create thousands of jobs in local supply companies.

Developers expect the Aycliffe site will employ up to 2,000 people in the coming years as Hitachi’s suppliers set up operations close to the train assembly plant.

Ms Greening said: “Hitachi could have built this factory anywhere in Europe, but it chose to invest here.

“This is a huge vote of confidence in the North-East that creates jobs and can help to give everyone a real lift.”

Building work will start on the Amazon Park site in the new year, with the first trains due to roll off the production line in 2015.

In a major boost to the region’s manufacturing industry, 596 railway carriages will be built at the factory to replace the ageing Intercity 125 trains that run on the East Coast and Great Western lines.

Hitachi also plans to export trains and The Northern Echo understands the Japanese firm is on a shortlist for a major deal to supply Germany.

The campaign to bring Hitachi to County Durham was led by Sedgefield MP Phil Wilson.

He said: “This is fantastic news that will act as a catalyst for the area. Hitachi’s supplier companies can move to the site and create even more high-quality, skilled jobs for local people.

“There will be new apprenticeships and I think it is very significant that Hitachi will set up a research and development facility here, which shows they are committed for the long term to Newton Aycliffe and to the wider North-East.”

Geoff Hunton, director of developer Merchant Place, said: “The factory only takes up one third of this site. I have several interested parties looking to move here who would not do anything until the Hitachi deal was signed.

As soon as this was confirmed, I contacted them all.”