The bespoke space can accommodate six high growth SME businesses in the advanced manufacturing and offshore supply chain sectors.
The new zone is located just a few miles away from the new Equinor and SSE Renewables Operations and Maintenance base at The Port of Tyne in South Shields, which is expected to create significant supply chain opportunities in supporting the development of the new Dogger Bank Wind Farm.
South Tyneside Council was awarded almost £500,000 from the Government's Local Growth Fund through the North East Local Enterprise Partnership (LEP), to refurbish around 800m2 of space at Jarrow Business Centre.
Cllr Mark Walsh, Lead Member for Regeneration and Economy, said: "Manufacturing, innovation and productivity are the cornerstones of the borough's economy. This facility will provide much-needed quality accommodation for SMEs operating in the advanced manufacturing and offshore energy sectors to grow and create jobs.
"Located in an established manufacturing area with a burgeoning offshore cluster, it is perfectly placed to take advantage of supply chain opportunities arising from the Operations and Maintenance base for the upcoming Dogger Bank Wind Farm at Port of Tyne, as well as its proximity to the International Advanced Manufacturing Park and Nissan.
"One of our key priorities is to create the conditions for investment and recovery; this development will provide high quality manufacturing space to businesses from the borough and beyond, create jobs and boost productivity and competition.
"There are six brand new self-contained units which would be an ideal base for SMEs wishing to serve larger tier 1 and tier 2 manufacturers. We're looking forward to welcoming new businesses and are inviting prospective tenants to get in touch."
It is anticipated that the development will have long-term impacts on the wider region as companies develop and grow, moving on to larger accommodation in the North East.
Helen Golightly OBE, chief executive of the North East Local Enterprise Partnership, said: "The significant investments made in our region's advanced manufacturing and offshore wind sectors have unlocked the potential to create thousands of new jobs, and firmly establish the North East as one of the world's leading business destinations for new and emerging industries.
"Jarrow Business Centre is strategically placed to support both sectors and its high specification will ensure we attract the very best talent to the region. The Local Growth Fund has been successful in supporting infrastructure projects that not only benefit our local economy, but also improve support for businesses."