Prime Minister Sir Keir Starmer has said hundreds of jobs at the train factory have been safeguarded following the £500m deal.
A gap in orders at Hitachi’s Newton Icliffe site in County Durham had sparked concerns about the future of the site and its nearly 700 employees.
Now the government has announced that the factory has been contracted to build 14 “state-of-the-art” trains.
Sir Kerr said the deal had given “certainty and stability”.
Speaking to BBC Look North at the factory, the Prime Minister described its workforce as “world-class” and said the deal had eased employee anxiety in recent months.
“I stood before them the last time I was here and said, if we win the election and form a government, I give you my word, we’ll make a deal to bridge the gap and fix it. Will go to all the trouble to try,” he said.
“It’s really good for train building, it’s really good for the country but, on a human level, it’s very important for them, for their families, for the whole communities here that depend on these jobs.”
Asked what role the government had played in the private sector deal, he said it had “helped set the strategy, getting us clear about the mandates we need, To secure these deals”.
The contract to build the five-car Class 80X Hitachi electric or bi-mode trains was signed between First Group, Hitachi and Angel Trains, with deliveries expected to begin in 2027.
Hitachi Rail’s UK and Ireland chief director, Jim Breon, called the deal “a positive step”.
It also includes an agreement to lease another 13 five-car trains to First Group. Plans to expand its Lumo services. be successful
“We look forward to once again delivering Hull Trains and Lomo for passengers who will benefit even more from our award-winning British-built trains,” Mr Breon said.
First Group CEO Graham Sutherland said the deal would support UK manufacturing and “offer more choice to consumers as they consider affordable, environmentally friendly ways to travel”.
The chief executive of the Northern Powerhouse Partnership, which represents the business, told the BBC the decision provided Hitachi with “welcome breathing space”.
Henry Morrison said the previous government “left a mess”.
“Major delays and delays were encountered as they approached operators directly or indirectly under their control to order new trains,” he said.
“What we will have now is a number of train purchases coming forward, I would expect, over the coming months and years, which will give Hitachi and other factories in the north of England a fair chance to compete for work. Will.”
North East Mayor Kim McGuinness welcomed the news and said protecting jobs at Hitachi was at the top of her list of priorities when she was elected.
“Today shows the power of what we can achieve when we stand together, and that there are brighter days ahead of us in our great Northeast,” he said.
Meanwhile, Tees Valley Mayor Ben Houchen described the announcement as “celebratory” but warned “we need to make sure the government doesn’t back away from it and assume its job is done”. It’s done.”
The Conservatives said on Monday there was “a real risk” the factory could close in the coming weeks or months.
“The fact that it is safe, at least temporarily, is great news and we have to thank the government for working so hard.
“This will provide relief to many workers and their families over the Christmas period and into 2025.”
But he said the long-term viability of the factory was yet to be considered.
“This is not the end of the road.”