Two engineering giants have joined forces to bid for a £500million contract to build new trains and a depot for the Tyne and Wear Metro.
From 2022, the existing fleet will be replaced with brand new high technology trains and maintained at a newly-constructed site in Gosforth.
Now Hitachi and Spencer Group are hoping to secure the work.
The two firms have teamed up previously, when Spencer Group successfully upgraded existing East Coast main line rail depots ready for Hitachi’s new intercity trains.
Hitachi is building the new intercity trains which will soon connect Newcastle to London, Scotland, Manchester and Liverpool.
Ross Nagle, Chief Operating Officer for Manufacturing at Hitachi, said: "Our train building team in the North East is delivering truly world class trains already carrying millions of passengers around the country.
"We are now working hard to secure more orders, so our investment in the North East economy will continue to be felt across the region and with our local suppliers."
Gary Thornton, Managing Director of Spencer Group, said: "Our partnership with Hitachi to bid for the contract with Tyne and Wear Metro builds on our successful relationship delivering major rail projects.
"Together we offer a compelling proposition of complementary engineering expertise that will deliver unrivalled benefits to the client and value to the economy of the North."
Hitachi has invested more than £100million in its train factory in Newton Aycliffe supporting thousands of jobs in the North East.
As well as creating over 700 permanent jobs at the factory, Hitachi uses a British supply chain for train parts.
The train builder has spent more than £628million with UK suppliers, with 70% of parts fitted sourced from within 40 miles of the factory.
Engineering specialist Spencer Group employs 300 people in the North, including at its headquarters in Hull.
Spencer Group has delivered more than £85million of projects within the North East, which has included extensive work at Heaton Depot to upgrade the facility for the arrival of Hitachi’s new intercity trains as part of the Intercity Express Programme, as well as an industry-leading biomass handling facility at the Port of Tyne, which created more than 200 construction jobs for the region and employed two apprentices and five NEETs (Not in Employment, Education or Training).