Issued by: Department for Business and Trade

£50 million investment deal between JATCO, Nissan and the UK government secured to build a new manufacturing site in Sunderland.

• £50m investment deal secured between JATCO, Nissan and UK government to build new manufacturing site in Sunderland.

• Site will be JATCO’s first UK and European plant and is set to create and support hundreds of jobs in the North East.

• Announcement is the latest in a series of job-boosting investments to deliver growth as part of the Plan for Change, including £14 billion in AI investment and £4 billion from Malaysian company YTL creating 30,000 jobs.

Car manufacturing giant Nissan, and the Japan Automatic Transmission Company (JATCO) have secured a £50 million 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 £2 billion 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. 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.

This is the latest in a tidal wave of investments announced this week, including a £4 billion 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 £14 billion 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.

Since entering office, the government has been focused on restoring economic stability, the foundation of growth, to give businesses the confidence to invest and expand in the UK – and today’s announcement is a major vote of confidence in the UK’s investment environment.

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 our Plan for Change.

Minister for Investment Baroness Gustafsson will visit the North East today [Thursday 16 January] to open the new facility and hear from senior officials from JATCO and Nissan about how the government funding will help bolster the UK’s automotive industry’s transition to electric vehicles and support economic growth, an integral part of the government’s 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 world’s biggest 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 £27.9 billion. 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.

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, 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."

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."

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."

The UK is home to a world-class and comprehensive automotive and innovation ecosystem, including the APC, Faraday Battery Challenge, High Value Manufacturing Catapult and the ATF.

Through the ATF, the government continues to unlock private investment in UK automotive design, development, and manufacturing as the sector transitions to zero emission technology. To date, ATF and APC funding programmes have leveraged over £6bn of investment from the private sector.

The Autumn Budget confirmed over £2 billion for capital and R&D funding over five years for zero emission vehicle manufacturing and their supply chains. Building on the achievements of the ATF and APC programmes, this long-term commitment is a vote of confidence in the UK’s automotive industry, supporting investment and productivity growth across UK automotive.

At the end of last year, the government launched a consultation on support for the zero emission transition, restoring clarity for vehicle manufacturers and the charging industry so that they have the confidence to invest in the UK in the long-term and drive growth in the UK automotive industry.

The government’s new modern Industrial Strategy will deliver long-term, sustainable, inclusive growth right across the UK by driving investment into the economy and hardwire stability for investors, giving them the confidence to plan not just for the next year, but for the next 10 years and beyond.

Notes to Editors:

JATCO’s total investment has been enabled by over £12 million of government funding through the Automotive Transformation Fund (ATF).

JATCO is a global automotive manufacturer headquartered in Japan and is world-leading in the production of transmissions.

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