CAMPAIGNERS who fought to bring train manufacturing back to the cradle of the railways yesterday celebrated one of the region’s biggest jobs boosts in a generation.

Politicians, unions and business leaders believe the Hitachi deal will transform the local economy and are already looking to the futuredetermined that the North- East makes the most of the opportunity.

Kevin Rowan, regional secretary of the Trades Union Congress, said: “Hitachi’s confidence in the North-East is much deserved and fully recognises everything our region has to offer from the workforce through to land and location.

“I know that unions, employers, councils, enterprise partnerships and the MPs will do everything we can to build on this opportunity.

“Government ministers should look closely at what we have achieved here and appreciate the value in investing in underdeveloped regions to create economic growth and more decent jobs for the future.”

North-East MEP Fiona Hall said: “This is an important day for the whole region. It means thousands of sustainable, skilled jobs throughout the North-East at a time when many are struggling to find work.

“As Nissan has helped reshape Wearside ’s economy, so Hitachi can transform County Durham.

“We need to build our way out of this recession, and this deal proves big companies and the Government have the confidence in our region to help us do just that.”

Chiaki Ueda, who will retire from his position as chairman of Hitachi Rail Europe on Monday, said: “This was a project that Hitachi began when Beijing was hosting the Olympics (in 2008) and it has been completed as the London Olympics is about to start.

“It has been a long journey, but we are delighted to be here.”

Alistair Dormer, the chief executive of Agility Trains, who will succeed Mr Ueda, said: “Seeing the Government here in Newton Aycliffe today just shows what a big deal this is for the North-East and for the country. It is great news for the region that is the home of train building.”

Julia Long, a national officer with the union Unite , welcomed jobs for an area suffering from high unemployment, and said Labour deserved credit for work done by the last government to secure the deal.

Jonathan Walker, of the North-East Chamber of Commerce, said: “While plans for this development have been known for some time, the signing of the contract finally turns these plans into reality.

“This is a welcome boost to the North-East economy and further cements the region’s reputation as an attractive location for international manufacturers.”

As the biggest train-building project in a generation, there are hopes that the benefits will be wide-reaching.

Mr Walker said: “Every effort must now be made to ensure that North-East firms can benefit from the supply chain and construction opportunities that stem from this announcement.”

Stockton South MP James Wharton said: “The contract is worth over ten times the annual budget of the old regional development agency and is predicted to create 8,000 jobs down the supply chain, many of them in Teesside and County Durham. This is something everyone can get behind. It is the biggest single investment in the North-East by any government in recent times.”

South Durham Enterprise Agency , which supports new and growing companies, hopes businesses on the industrial estate and in surrounding towns can cash in on the influx of workers.

Executive manager Steve Robson said: “We are keen that this flagship announcement filters down through the supply chain and businesses of Newton Aycliffe, Bishop Auckland and other areas for them to build upon it.

“We want anyone supplying Hitachi directly or secondary suppliers such as a man with a burger van or cafe nearby to see visible benefits in their businesses.

“It is an important boost for the area and that estate.”