A space technology research centre is to be established in Newcastle city centre by Northumbria University and aerospace giant Lockheed Martin, creating hundreds of new jobs.

The North East Space Skills and Technology (NESST) Centre will be established at Northumbria's city campus following £50m of funding, including £10m from the UK Space Agency, £15m from Lockheed Martin and match funding from the university. Confirmation of the news comes more than a year after Lockheed said the North East was a frontrunner in plans to locate a new UK space factory and research site.

The US aerospace name will become the first tenant in the centre, which will feature world-class laboratory, testing, teaching, collaboration and office spaces in a setting designed to bring together industry and academia to collaborate on internationally significant space research and technological developments. Funding from the UK Space Agency has come via the Space Clusters Infrastructure Fund (SCIF), which aims to increase the capability and capacity of the UK's space sector.

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The centre will be located Northumbria University's Wynne Jones building, which is undergoing redevelopment and due to re-open in 2025. It will house some of the university's existing space partnerships and will also be open to businesses of all sizes working in the space sector. Northumbria says the centre is expected to directly support the creation of more than 350 jobs and inject £260m into the North East economy over the next 30 years.

Prof Andy Long, vice-chancellor and chief executive of Northumbria University, said: “This is a pivotal moment, not just for Northumbria University, but for the wider North East region and indeed, for the UK space sector as a whole. This catalytic funding from both the UK Space Agency and Lockheed Martin recognises the world-leading excellence in all aspects of space research at Northumbria University. Quite simply, NESST will be a game-changer for the whole of the North East, ensuring the region becomes a major hub for innovation in the global space economy.”

Nik Smith, regional director for UK and Europe, Lockheed Martin, said: “NESST is one part of Lockheed Martin’s investment plans for our space business in the UK and will provide early prototyping and test facilities for new capabilities that could eventually be manufactured onshore. It will also be a reskilling hub, providing the pipeline of talent we will need to deliver national and even global programmes. With this investment, Lockheed Martin is thrilled to further our collaboration with Northumbria University and the UK Space Agency, and be a part of such significant initiatives for the region and the entire UK space sector.”

Last year, Northumbria University and Lockheed Martin kicked off a partnership exploring the transmission of power to enable wireless charging of satellites, and for new forms of inter-satellite communications. At that point Lockheed invested £630,000 into the partnership and its £15m contribution to NESST will be used for equipment for the centre.