South Tyneside Council aims to create a 1,700 job site site specialising in marine, offshore and energy services.
The project is part of a new enterprise zone for the North East which will include a site at South Shields’ riverside.
Chancellor George Osborne said a new enterprise zone - areas where businesses are offered financial incentives and streamlined planning applications to set up shop - for the North East region would be spread across ten sites.
South Shields’ Holborn Riverside is the first site that won the Government’s backing and the 30-acre zone will specialise in the marine, offshore energy and services sector and open up a deep water quay on the Tyne.
Coun Iain Malcolm, leader of South Tyneside Council, said the move will create as many as 1,700 jobs and is an important step in regenerating the area.
He said: “This is great news for the people of South Tyneside..Securing an enterprise zone site for South Shields shows testament to the strength of partnership working between the Local Enterprise Partnership (LEP) and the public sector.
“At present there is a gap in provision of Grade A office accommodation and industrial premises in the borough. This announcement addresses that gap.
“The project at Holborn will see the creation of higher skilled, higher paid jobs. As well as enabling the business services and ICT/Digital sectors to further develop in South Tyneside.”
Chancellor George Osborne said the new enterprise zone would see the region specialise in health/life science, creative digital, automotive and subsea and offshore renewables.
The location of other sites is still to be announced.
The project at Holborn will support the growth of the marine, offshore energy and services sector in the North East and open up access to a deep water quay.
North East Local Enterprise Partnership chairman, Paul Woolston, added: “I’m delighted about our successful bid for a second enterprise zone for the region.
“More and better jobs for South Tyneside is not only good news for the local area, but for the wider North East as we strive to take maximum advantage of the opportunities the new multi-site enterprise zone presents for the region.”