Over 4,000 new jobs will be created in Sunderland by a new deal between car makers Nissan, development agency One North East and the city council.
The deal will see Nissan sell part of the site and use the proceeds to fund a new £4.5 million logistics centre, with the land used by the council and One North East to create a new business park.
New employment in the 45-acre park will be provided by offices, industrial units, a car showroom and a hotel.
There will also be improvements to the local road infrastructure as part of the plan.
Nissan's Sunderland plant employs 4,500 workers and has been making cars since 1986.
The company has said the new logistics centre will help improve the efficiency of its worldwide sourcing operation.
In a statement, Sunderland City Council leader Bob Symonds said: "Nissan contributes almost £500 million to the local economy each year, while the company and its component suppliers provide over 15,000 jobs in Sunderland and the surrounding area, so this is a welcome enhancement of its business."
Nissan's Sunderland plant enjoys a reputation as the most efficient car plant in Europe.