FEARS that plans to build a new highspeed train manufacturing plant in County Durham could be derailed were "completely unfounded", according to the property developer leading the scheme.

Merchant Place Developments (MPD) director Geoff Hunton, who was part of the team that brought train building back to the region, confirmed the scheme was on track and plans for the design of the factory were "at an advanced stage." Mr Hunton welcomed comments made earlier this week by George Osborne, during a trade mission to Japan, when the Chancellor confirmed that a delay in the Government and Hitachi-led Agility Trains consortium signing the train building contract was not a sign the project was in jeopardy. The deal is expected to be completed in the upcoming weeks. The £4.5bn contract will create 500 jobs directly at a new factory in Newton Aycliffe, about 200 during construction and thousands more in the supply chain.

An open day will be held in June to give firms in the construction trade more details about contracts up for grabs as the new plant gears up to start production in 2015. Mr Hunton also confirmed that "a number" of discussions were taking place aimed at bringing other business to the site, but any deals were dependant on the train building contract being finalised.

"Hitachi should not be an isolated case, we must build on the success of this project," said Mr Hunton. "A major scheme like this can have a ripple effect throughout the region and persuade other companies to locate here.

"We saw that with Nissan, which has been an incredible success story. The Hitachi site can have a similar impact in reminding firms across the world about the North-East."

However, Mr Hunton warned that the success of attracting major inward investment to the region depended upon the public and private sectors joining forces.

"We succeeded because everyone; us in the private sector, Durham County Council and the County Durham Development company, cross party political support led by Phil Wilson MP, and the local media, were all pulling in the same direction. That must be the way forward. The region needs to act as one if it hopes to secure these types of investments."

Mr Hunton shared his views with delegates attending the annual RICS (Royal Institution of Chartered Surveyors) North East Summit, which took place at the Centre for Life, Newcastle yesterday.

A line up of national and local experts, including Sir Ian Wrigglesworth, who sits alongside Lord Heseltine on the Regional Growth Fund approval Panel, and Lord John Shipley, the Liberal Democrat Peer, Newcastle City Councillor and an adviser to Cities Minister Greg Clark, explained their hopes and aspirations for the region.

Summit chairman Kevan Carrick, senior partner at JK Property Consultants LLP, and a Fellow of the RICS, said the event provided a "state of the region" report with a special attention on property.

"The region faces many challenges to ensure economic growth and the creation of new jobs and at the summit we got an update from those at the sharp end of central and local government and the business world," he added.