Nissan and the Japan Automatic Transmission Company (JATCO) have secured a £50m investment in partnership with the government to build a new manufacturing plant in Sunderland.
The new facility will be built close to the Japanese car maker’s existing factory which builds the Qashqai and Juke, and will make electric powertrains for Nissan’s future electric models.
Some 183 new jobs will be created as JATCO aims to produce 340,000 electric powertrains per year for Nissan.
JATCO has supplied over 129 million automatic transmissions all over the world since it was established in 1970, with this new development allowing it to have a closer relationship with Nissan.
Business and trade secretary Jonathan Reynolds said: ‘Sunderland is the beating heart of the UK’s automotive industry. Today’s announcement is a massive vote of confidence in the UK economy and this government’s plans to make Britain the destination of choice for investment.
‘Not only will this boost our thriving auto industry, but it will help secure hundreds of jobs across the North East.’
Tomoyoshi Sato, JATCO’s CEO said: ‘I am so proud to officially open JATCO UK in the North East of England. We have enjoyed a long and fruitful partnership with Nissan and we are delighted to bring the manufacture of our three-in-one powertrain to the UK.
‘This will be our fourth country for an overseas production plant, with other locations in Mexico, China and Thailand.’
JATCO is currently fitting out the new facility ahead of a planned completion next year.
Nissan is focusing on going electric for its model line-up with its EV36Zero plan.
This will make the Sunderland plant an EV hub with three electric vehicles in the pipeline along with renewable energy, pushing the firm to become a carbon-neutral company in the future.
Alan Johnson, senior vice president, Manufacturing, Supply Chain and Purchasing for Nissan AMIEO, said: ‘This is a fantastic step forward for our world-first EV36Zero plan.
‘Welcoming a key supplier to the North East of England provides a big boost to the efficiency of our supply chain. We look forward to continuing our long and successful partnership as we push towards our electric future.’