DEVELOPERS are closing in on a deal that will create up to 4,500 North-East jobs.

Newcastle-based Merchant Place Developments (MPD), which led the campaign to bring a 730-jobs Hitachi train factory to Newton Aycliffe, expects to announce next month that it has secured another massive investment for the County Durham town.

MPD own the Merchant Park site at Aycliffe where Hitachi Rail Europe yesterday unveiled the first phase of its £82m train factory.

The exterior of the plant, that will make trains for the East Coast and Great Western lines, is now complete and work has started on fitting it out before train production starts in early 2016.

The next jobs boost will see the development of a new site - not linked to the Hitachi factory - close to Aycliffe Business Park. Developers are working with Durham County Council to secure the deal that should be confirmed in November, MPD director Geoff Hunton told The Northern Echo.

He believed that Hitachi’s vote of confidence in the North-East was acting as a catalyst to other investors, leading to the revival of Aycliffe and the surrounding area.

Mr Hunton added: “Merchant Park is benefitting from the upturn in the economy and what is becoming known as ‘the Hitachi effect’.

The announcement was made as the Japanese manufacturer strengthened its commitment to the region by confirming it was making Aycliffe the headquarters of its UK design office. A team of 12 will be based at the Hitachi Aycliffe factory to design train carriage interiors for operators including Scotrail.