Sunderland City Council appoints GMI Construction Group to start £4.9m upgrade at CESAM

This will enable JATCO to commence production of innovative 3-in-1 electric vehicle powertrains for Nissan’s nearby Sunderland plant.

This marks a return to the International Advanced Manufacturing Park (IAMP) for GMI, which originally completed the CESAM manufacturing and research hub in 2019.

During the pandemic, CESAM played a vital role as an NHS Nightingale Hospital and later as a mass vaccination centre. This upgrade represents a pivotal step in restoring CESAM to its original purpose – establishing the North East as a leader in advanced manufacturing technology and innovation.

The project includes the construction of additional external buildings and modifications to the existing 138,840 sq. ft facility to meet the specific needs of JATCO, a leading Japanese automotive transmission manufacturer.

JATCO’s £48.7m investment in the facility will create up to 183 highly skilled jobs, bolstering the UK’s electric vehicle (EV) supply chain. The site will produce 3-in-1 electric powertrains for Nissan’s Sunderland plant, a cornerstone of Nissan’s EV36Zero initiative, a transformative project integrating EV production, renewable energy, and battery manufacturing to establish a global blueprint for the automotive industry's future.

Gary Oates, GMI’s Divisional Managing Director, North East, said: “We’re proud to return to CESAM to deliver this important extension and upgrade on behalf of Sunderland City Council for JATCO. This project is a testament to the quality of our work and highlights our commitment to supporting innovative companies. It also reinforces the North East’s role as a key hub for electric vehicle production and advanced manufacturing.”

Michael Mordey, the leader of Sunderland City Council adding: “JATCO’s decision to locate in our city is a testament to Sunderland’s strength as a world-renowned hub for automotive and advanced manufacturing. This investment will benefit our communities and reinforce our reputation as a destination for innovation and growth.”

Alan Johnson, Senior Vice President, Manufacturing, Supply Chain and Purchasing for Nissan AMIEO, commented: “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.”

Tomoyoshi Sato, JATCO’s CEO, said: “We have enjoyed a long and fruitful partnership with Nissan and are delighted to bring the manufacture of our 3-in-1 powertrain to the UK. I am grateful for the support of the UK Government, Sunderland City Council, and all others involved in the establishment of JATCO UK.”

JATCO joins a cluster of automotive and advanced manufacturing businesses located at IAMP, a joint venture between Sunderland City Council and South Tyneside Council.