UK Docks has agreed on a long-term lease on two more dry docks on Teesside, a move which will see the former Smith's Docks Company site consolidated under one company.
UK Docks already operated two of the dry docks previously belonging to Smith's, and is now set to reopen the other two.
"The goal now is to turn Teesside into an even more important destination hub for ship maintenance and repair nationally and internationally in the years ahead, launching a new era for marine services and repair on the Tees," said UK Docks.
The announcement of the new tenancy follows months of negotiation with site owners PD Ports.
"The agreement will now spark a multi-million-pound investment in the yard, which has two dry docks and extensive workshops across its 10-acre site but will benefit from extensive modernisation in the next few years," added UK Docks.
The new lease will see two more docks added - one measuring 175.26 metres by 22.25 metres and the other 120 metres by 17.3 metres. The bigger of the two dockyards will allow UK Docks to tender for a broader range of vessels.
In addition, the newly leased yard offers lay-by berths, an extra 200 metres of quay space, extensive fabrication, engineering workshop facilities, and laydown areas.