Hundreds of jobs in the North East have been secured following a £300m contract awarded to Hitachi Rail's plant for new trains.
Sunderland based Arriva Group announced the procurement of nine battery hybrid trains, all set to be built at the train manufacturer's County Durham plant in Newton Aycliffe, as its Grand Central service was granted permission to run until 2038 from Sunderland and Bradford to London.
These new greener trains, which are developed in the North East, will offer a 20% increase in seating capacity, enabling an additional 400,000 trips annually. As well as cementing the continued operation of the Newton Aycliffe Hitachi factory, which had been at risk last year due to a lack of orders, the deal comes months after a significant deal secured by First Group for its Lumo service at the end of last year. Transport Secretary Heidi Alexander visited the Hitachi site to officially confirm the transaction.
Jim Brewin, Hitachi Rail's Ƶ and Ireland chief director, said: "As we celebrate 200 years since the birth of the modern railway in the North East, it's symbolic that innovative battery trains are being developed in Newton Aycliffe. Battery trains' ability to deliver cheaper, greener, and more reliable journeys means we are unlocking a new advanced manufacturing opportunity for rail today.
"Following the successful trial of this pioneering battery technology last year, Arriva and Angel Trains are transforming Hitachi's £17m R&D investment into the first battery train order to be built in the Ƶ."
Newcastle University tech spin out Microbritt is expanding into a new base in Northumberland on the back of a £400,000 investment.
Microbritt, which was spun out of the university in 2021, has developed a precision service which micro-manufactures products from brittle materials such as glass, silicon, polymers and ceramics. The company has developed a patented process for the production of high value prototypes and complex products which are created from brittle materials, and its technology has can be used in sectors including semiconductors, healthcare, photonics and defence.
Last year the firm sealed the six-figure investment led by the North East Innovation Fund, which is supported by the European Regional Development Fund, and managed by Northstar Ventures, alongside business investor Angel Groups. The funding has enabled Microbritt to move into its new base in Cramlimgton where it can scale its micro-milling techniques, expand its production capabilities, and invest in advanced technologies and creating new jobs.
Dr Carl Dale, CEO and co-founder of Microbritt, said: “The relocation to our new facility in Cramlington marks a major milestone for Microbritt. Expanding our operational footprint by ten times allows us to significantly enhance our manufacturing capabilities, accommodate cutting-edge equipment, and drive further innovation in precision microfabrication."
Major North East employer Banks Group has struck a deal with Durham Cricket which includes the naming rights to the Riverside ground. The Durham based property and mining firm is now the club’s new principal partner, following an agreement which will see the Chester-le-Street venue become known as the Banks Homes Riverside Stadium. The multi-year sponsorship deal, which forms part of Banks’ celebrations of its 50th anniversary next year, will also see Banks’ branding feature on the Durham Cricket men’s, women’s and junior pathway teams’ kits, as well as around the stadium.
The Banks Group is succeeding Seat Unique as Durham Cricket’s principal partner, with Seat Unique remaining as its official premium ticketing and hospitality partner. The group, founded in Tow Law in 1976, has been a longstanding supporter of Durham Cricket, having worked alongside the club for over 30 years, and it has made a number of investments in grassroots cricket across the North East, through the sponsorship of a number of local league and cup competitions. A number of grants have also been awarded to individual clubs.
Russ Hall, managing director at Banks Homes, which launched in 2023 and is now developing residential sites across the North East and Yorkshire, said: “Banks Homes is already making its mark on the residential property market and this new relationship with Durham Cricket gives us the ideal platform for further increasing brand recognition across our target markets.
“We pride ourselves in our residential developments always being placed for perfection and we couldn’t be in a more perfect location than the iconic Riverside ground.”
Law firm Womble Bond Dickinson (WBD) has struck a strategic alliance with a leading Brazilian business to extend its reach over three continents. The Newcastle company, which also has offices in Edinburgh and on Teesside, has joined forces with law firm Schmidt, Valois, Miranda, Ferreira & Agel (Schmidt Valois) in a deal to combine their resources and expertise, to benefit clients and boost their international footprint. The strategic alliance will have a particular focus on the energy sector where both firms share significant international experience and capabilities.
Paul Stewart, managing partner of Womble Bond Dickinson (Ƶ), said: “This is an exciting development for us in the Ƶ and internationally. Investing in our energy sector offering and making more of our international reach are two key parts of our strategy.
“Few firms of our size in the Ƶ can match our international network, with our colleagues in the US, strategic alliances in France and Germany, and our wider international reach through the Lex Mundi network. With market-leading credentials in energy and renewables projects both in Latin America and globally, Schmidt Valois will help us do even more for our clients.”
Workplace wellbeing specialist OptiMe has secured a a five-figure investment from NPIF II - NEL Smaller Loans, which is managed by NEL Fund Managers as part of the Northern Powerhouse Investment Fund II. The Software-as-a-Service (SaaS) platform and app is focused on revolutionising mental health support for employees across the Ƶ and the new loan has supported OptiMe to unlock a grant from Tees Valley Combined Authority (TVCA). It forms part of a wider project to help the company personalise its content, introduce AI-driven coaching features, and expand its team by creating 10 new jobs.
The firm's commitment to improving mental health in the workplace comes at a time when companies are increasingly recognising the importance of supporting their employees’ mental wellbeing. The platform is already used by clients such as Domino’s, Costa, and Newcastle College Group,.
Bethany Ainsley, founder of OptiMe, said the new investment positions the company to scale up, broaden its reach and deliver meaningful impact, adding: “We’re grateful for the investment from NPIF II - NEL Smaller Loans, which will drive accelerated growth and has also helped us unlock a business development grant from TVCA. This support positions us strongly for further venture funding and enables us to scale and make innovative workplace wellbeing solutions accessible to organisations of all sizes. Ultimately, we aim to transform workplace culture by providing personalised support that prioritises every employee's wellbeing.”
Housing provider Home Group says it has boosted liquidity by £260m thanks to successful renegotiations with lenders and one new source of funds.
The £490m-turnover housing association has reached agreements on facilities from existing lenders Lloyds, HSBC, and Nationwide - increasing to £250m, £175m and £140m respectively - and secured a new £110m facility with Barclays. As part of the refinancing, Home Group said it had aligned and modernised financial covenants, spread refinancing risk, achieved competitive commercial terms and secured options to extend facilities in the future.
The Newcastle-based organisation, which invested £187m to build new homes in 2023/24, said the facilities would allow it to continue developing properties for affordable rent, social rent and affordable home ownership.
Steve Hallowell, Home Group’s director of treasury and investor relations, said: "This financing exercise follows a review of our treasury strategy which was approved by our board in November. The strategy at this point focuses on increasing the pool of revolving credit facilities available to support our investment ambitions. We do expect to return to the capital markets for longer dated funding in future to repay drawn facilities and refinance some our shorter dated funding.
"We are very grateful for the continued support of lenders Lloyds, HSBC and Nationwide, who have been key financing partners for the group for many years. And we are delighted to add Barclays to our pool of strategic funding partners. We very much look forward to working with all of our funders in future as we contribute much needed additional affordable housing in response to the housing crisis and improve the energy efficiency of our homes as we target a minimum EPC C for our homes by 2030 and net zero by 2050.”
