More than 180 jobs are to be created by a Japanese supplier to Nissan with the launch of a new factory near the car maker’s Sunderland plant.
Jatco specialises in building automatic transmissions and will provide electrified powertrains for the Wearside factory to support Nissan’s EV36Zero project, which involves production of the all-electric Leaf, Qashqai and Juke models. The £48.7m investment has been described by the Government, which supported Jatco with more than £12m grant funding, as a “massive vote of confidence in the UK economy”.
Work is beginning on readying the 138,840 sqft facility at the International Advanced Manufacturing Park adjacent to the Nissan factory, which the firm’s new division, Jatco UK, says could employ up to 183 people. The plant – which was built for an automotive project but requisitioned to become the Nightingale Hospital during Covid – is scheduled for completion in 2026 when it will begin “localisation”, the process of production for Nissan’s North East-built cars. It ultimately hopes to produce 340,000 electric powertrains per year.
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.”
Jatco’s headquarters are in the Shizuoka prefecture of Japan, with factories in Mexico, China, and Thailand. The firm is a top global producer of automatic transmissions and has supplied more than 129 million automatic transmissions to the worldwide market since its inception in 1970.
Tomoyoshi Sato, the firm’s CEO, said: “I am so proud to officially open Jatco UK in the North East of England. We have enjoyed a long and fruitful partnership with Nissan and we are delighted to bring the manufacture of our 3-in-1 powertrain to the UK. This will be our fourth country for an overseas production plant, with other locations in Mexico, China, and Thailand.
“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 these 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.”
Coun Michael Mordey, leader of Sunderland City Council and finance and investment portfolio holder at the North East Combined Authority (NECA), said: “It’s fantastic to welcome Jatco UK to our city, which is a world-renowned hub for automotive and advanced manufacturing. Jatco’s decision to locate in the city is testament to the prowess of the city as a place to do business, and a vote of confidence in our workforce too. I’m confident that people from across our communities will benefit from this significant investment, and will – I am certain – repay Jatco’s belief in us as a city and a region, as they drive this new business to success here in the UK.”