Road surfacing contractor Northumbrian Roads has won its biggest contract - worth up to £15m.
The Prudhoe-based company beat off competition from several national contractors to win the business with Sunderland City Council, and could now recruit up to a dozen new staff over the five years of the deal.
Northumbrian Roads already works for some high profile clients including Bellway Homes, Moat House Hotels, Tesco and Sainsburys.
And the company, which already has 40 staff, is looking forward to increasing its £6.5m turnover by at least the 10% per year promised in its business plan.
Chris Dancer, managing director of Northumbrian Roads, said: "The contract was let on a price and quality submission.
"We have worked with Sunderland since 1994 on highway maintenance, but because of the size of this contract, the tender attracted national competition, so we are very pleased to win it.
"Now we have three to five years' secure contracts, there will be more jobs - possibly another two to three per year, depending on the growth we achieve."
The company has worked on planing roads, re-surfacing, road reconstruction work, and traffic calming for Sunderland.
Elsewhere in the region, Northumbrian has surfaced car parks and access roads at St James's Park, the MetroCentre in Gateshead, and DeVere Slaley Hall Hotel in Northumberland, among several high profile projects.
Mr Dancer said Northumbrian also has an ongoing arrangement with Bellway Homes, another with a Milton Keynes company for supermarket car parks up and down the UK, and another deal with the Moat House hotel chain.
He said: "Contract procurement in our industry is becoming increasingly geared towards long-term arrangements. This provides for real investment in terms of plant, equipment and above all long-term employment for our locally-based workforce.
"We are committed to working more closely with our City of Sunderland colleagues to bring about real value engineering solutions within the service we already provide."
Andy Morris, Sunderland's head of transport and engineering, said: "We went through a competitive tendering process and six companies' tenders were considered. The tenders were assessed for quality and price and Northumbrian Roads came out on top.
"The company will be carrying out all our highway resurfacing works throughout Sunderland. This will include single and dual-carriageway work and on residential streets.
"One of the aspects we have already been discussing with the contractor is how we can improve on the amount of material that can be recycled during the construction process.
"It's also hoped to reduce the amount of material going to landfill tips and reduce the extraction and haulage of new materials from quarries. This will have a positive impact on the environment.
"Northumbrian Roads has completed work for Sunderland over a number of years and the city council has been pleased with the results of this and look forward to continuing the association."