Manufacturing giant Siemens and the UK's Associated British Ports are to invest a total of £310m in UK wind turbine factories, creating 1,000 jobs.
Siemens will put up £160m - doubling its previous plans to invest £80m in wind turbine production in the UK.
The investment is being made across two locations - the Green Port project in Hull, and a second manufacturing facility in Paull in East Yorkshire.
Siemens said the UK "recognises the potential of offshore wind energy".
"We invest in markets with reliable conditions that can ensure that factories can work to capacity," said Michael Suess, head of Siemens's energy sector.
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Energy Secretary Ed Davey: "This is great news for Hull, it's great news for the UK"
"The British energy policy creates a favourable framework for the expansion of offshore wind energy. In particular, it recognises the potential of offshore wind energy within the overall portfolio of energy production."
Associated British Ports, which is collaborating with Siemens on the Green Port development in Hull, is investing £150m in the project.
The combined investment of £310m is expected to create up to 1,000 jobs directly - 300 more than previously announced - plus additional jobs in construction and through the supply chain.
The Green Port facility will construct, assemble and service offshore wind turbines, while the second Siemens site in Paull will be used to manufacture the 75-metre rotor blades.
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Energy Secretary Ed Davey said the investment demonstrated the UK was "backing enterprise with better infrastructure and lower taxes".
"This deal is excellent news for the people of Hull and the Humber, the UK, the wind industry, and our energy security," he said.
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