New £50m factory opens in Sunderland securing hundreds of jobs and boosting Nissan's electric vehicle production

JATCO’s first European plant will produce 3-in-1 electric vehicle powertrains for cars being manufactured at Nissan’s neighbouring Sunderland plant.

As well as creating 183 jobs at the new factory the development will also “support over 400 in the wider supply chain”.

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 £2 billion 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.

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.”

CEO of JATCO Tomoyoshi Sato was in Sunderland to officially open the new plant.

He 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

“I look forward to supporting Nissan’s EV36Zero project with our electric powertrains.”

North East Mayor Kim McGuinness added: "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."

The investment deal has also been supported by the UK Government who in the Autumn Budget confirmed over £2 billion for capital and research and development funding over five years for zero emission vehicle manufacturing and their supply chains.

Business and Trade Secretary Jonathan Reynolds, who is from Sunderland, 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 Automotive Transformation Fund (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.

Julian Hetherington, Automotive Transformation Director 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.”