Bridon International's new manufacturing unit, which will produce multi-strand ropes for the mining industry, is expected to be operational by the end of 2012.
The company has invested at total of £30m in the establishment of the new factory unit in Tyneside, UK.
The UK Government has confirmed that a grant from the Regional Growth Fund will fund the project.
UK Deputy Prime Minister Nick Clegg said that Bridon's new unit will be a valuable asset in strengthening the local and regional economy.
"We'll be proud to see the facility furthering the region's reputation as a global manufacturing base," Clegg said.
Bridon Group CEO Jon Templeman said that the state-of-the-art facility will produce ropes.
"Bridon Neptune Quay has been built to help us solve our customers' most significant technological challenges - whether it is lifting unprecedented loads in ever-deeper mines in South Africa or operating in some of the most challenging environmental conditions on earth," said Templeman.
The company's factory has been equipped with a unique closer machine, which has 24 bobbins with a 15t and 38t capacity.
The closer machine draws together thousands of wire strands into a single rope to create a 600t rope in a single pass.
The machine avoids the need for multiple passes, enabling production of longer and higher capacity ropes in a single piece, and is the first of its kind.
Bridon's deepwater portside location will enable it to offer loading solutions to reduce delivery timescales and order lead times for customers.