Zarah ChoudharyCar manufacturing giant Nissan, and the Japan Automatic Transmission Company (JATCO) have secured a £50mn investment deal in partnership with the government to create a new manufacturing plant in Sunderland.
The new site will help create 183 new high-value jobs in the region and support over 400 in the wider supply chain.
It will also establish JATCO’s first and only European plant and will produce 3-in-1 electric vehicle powertrains for Nissan’s neighbouring Sunderland plant.
Nissan is one of the largest UK-based vehicle manufacturers, employing around 6000 people across its Sunderland facilities, and today’s announcement builds on their £2bn investment in the region in 2023 to build electric vehicles.
From 2026, JATCO aim to produce 340,000 electric powertrains (the equivalent of an engine for electric vehicles) per year to supply new generations of Nissan electric vehicles.
This is the latest in a tidal wave of investments announced this week, including a £4bn investment by Malaysian company YTL in the UK over the next five years, transforming the greater Bristol area and delivering over 30,000 jobs across the UK.
More than £14bn pounds of investment into the UK’s AI sector and thousands of new jobs have also been secured in just 48 hours since the AI Opportunities Action Plan was published earlier this week.
Securing investment is also central to the government’s mission to deliver economic growth which will create jobs, improve living standards, and make communities and families across the country better off as part of their Plan for Change.
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.
“The government is working hand in hand with investors to build a globally competitive electric vehicle supply chain in the UK and our modern Industrial Strategy will build on this legacy, bringing growth, jobs and opportunities to every part of the UK.”
The announcement comes ahead of government ministers, including the Minister for Investment, attending Davos later this month where they will tell some of the international investors that UK PLC is open and ready for business.
The investment has been enabled by the ATF, which is accessed through the Advanced Propulsion Centre UK (APC), and aims to unlock private investment in UK automotive design, development, and manufacturing as the sector transitions to zero emission technology.
Sunderland has an expanding manufacturing presence, with sites from Nissan and key battery manufacturer AESC.
The value of inward FDI stock for the North East at the end of 2021 was £27.9bn.
Tomoyoshi Sato, CEO of JATCO, said: “I am so proud to officially open JATCO UK in the North East of England.
“And I am very grateful for the support of the UK Government, Sunderland City Council, and all others involved in the establishment of JATCO UK, and look forward to supporting Nissan’s EV36Zero project with our electric powertrains.”
Alan Johnson, senior vice president for Manufacturing, Supply Chain and Purchasing at 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.”
Julian Hetherington, director of automotive transformation at the APC, said: “I am delighted that the Automotive Transformation Fund has been able to contribute to and unlock significant private investment from JATCO who bring high quality and advanced technology to an already successful automotive region.
“Our support is a reinforcement of the UK’s continued commitment to the extended localised supply chain for low-carbon industries.”
North East Mayor Kim McGuinness said: “The car industry is synonymous with the North East, and today’s announcement underlines our huge potential in advanced manufacturing and electric vehicles.
“JATCO choosing the North East as the place to do business and locate in our Investment Zone shows the confidence global industry has in our region, and the leading role we are playing in creating jobs and opportunity for local people and UK plc.”
