Hitachi Rail Europe will set up its UK design office in County Durham.
The office will be built in the same building as Hitachi’s new manufacturing facility.
This facility in Newton Aycliffe will be Hitachi’s new UK and European rail centre, where they design and build trains for Great Britain and the rest of Europe.
Work will now concentrate on the interior fit-out of the facility
Merchant Place Developments and Shepherd are the appointed contractors.
Rail Minister Claire Perry MP said: “We are investing record amounts in transforming our railways over the next five years as part of our long-term economic plan”.