Sunderland will be home to a new powertrain manufacturing plant after Nissan, the Japan Automatic Transmission Company (JATCO) and the government agreed on a £50m investment deal.

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, which 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 the car maker’s £2bn investment in the region in 2023 to build electric vehicles.

From 2026, JATCO aim to produce 340,000 electric powertrains per year to supply new generations of Nissan electric vehicles. With the UK already being the largest EV market in Europe, this investment further bolsters the UK’s domestic EV manufacturing capabilities and secures the UK’s position as a world leader in the industry.

Speaking about the announcement, 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 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. Unleashing the full potential of the UK’s cities and regions is a core objective of the government’s Industrial Strategy. Facilitating investments like this is central to achieving this goal.