Chancellor George Osborne announced an extension to the North East enterprise zone during a visit to the new distribution centre being built by Vantec Europe in Sunderland.
Vantec Europe, a subsidiary of Hitachi specialising in freight forwarding and logistics, is building the £22.5 million, 421,000 sq ft distribution centre on an enterprise zone near the Nissan assembly plant.
Osborne said: “When I announced the decision to create the North East enterprise zone I said that if it was a success, I would consider the case for expanding it.
“What I’ve seen with my own eyes today at Vantec shows that it is a success. I can confirm that the government will offer new tax breaks for an additional 40 hectare site.