Hitachi has secured an order to manufacture 70 new rail cars for FirstGroup's growing open access business.
Prime Minister Sir Keir Starmer is visiting the County Durham site today to celebrate the agreement.
14 new trains will be delivered and financed by Angel Trains under the new agreement.
The trains will be used on the open access rail services including the Hull Trains and Lumo Services.
Jim Brewin, chief director of UK & Ireland at Hitachi Rail, added: "This contract is a positive step forward, and just recognition for the hard work and patience of our teams across the Hitachi Rail UK business over recent years. We look forward to once again delivering for Hull Trains and Lumo passengers who will benefit further from our award-winning British built trains.
"We owe a lot to the innovation and creativity shown by our customers Angel Trains and FirstGroup and are excited to work in collaboration to deliver on our combined ambitions.
"Equally, we owe a debt of thanks to the North East mayor Kim McGuiness and other local MPs who have worked tirelessly in support of this private sector investment."
