The company, which started as a milk float manufacturer in Newcastle, said the new facility will create up to 100 local jobs and extend production beyond its existing factory and headquarters in Kansas City.

Production of the Smith Newton medium-duty all electric commercial vehicle, which is eligible for the $20,000 (£12,627) New York State-backed purchase incentive announced earlier this week, will begin early next year. Smith already counts The Coca Cola Company, Staples and Fedex among its customers in the United States.

Bryan Hansel, CEO and chairman of Smith, commented: ‘This expansion reflects an important step in executing Smith's localized assembly, sales and service strategy. Our approach creates jobs, provides Smith customers with more localized support and significantly reduces the costs associated with shipping completed vehicles to our customers.

‘We applaud the governor's leadership and that of the numerous state and local officials who have come together to support a program that encourages fleets to accelerate their conversion from diesel to electric.’