Japanese automotive supplier Jatco says its forthcoming North East factory will serve hopes of wider European work, including with brands such as Volkswagen and BMW.
The majority Nissan-owned transmission specialist says 80% of its capacity at the newly announced Sunderland factory will be given over to production of drivetrains for Nissan's all-electric models that are built at its nearby plant. Jatco boss Tomoyoshi Sato said he also hoped to secure work with other manufacturers as the North East facility - its fourth factory in addition to Mexico, China, and Thailand - would serve as a key European base.
Mr Sato said there was no timeline on reaching the planned 340,000 unit per year capacity at the International Advanced Manufacturing Park facility, which is expected to support more than 180 jobs. Work is due to start soon on the extension and fit-out of the 138,840 sqft building.
Jatco has received £12m of grant funding from the Automotive Transformation Fund towards the £48.7m investment. Mr Sato told BusinessLive the British Government was "very good to us" and thanked ministers and officials for their support.
At an event marking the launch of new division Jatco º£½ÇÊÓƵ, which will operate the plant, Mr Sato said the firm would develop the plant into one with high production efficiency in the hope that it could expand further. He said: "Since our establishment in 1970, we, as Jatco, have spent over 50 years developing and producing transmissions for automobiles and supplying them to Nissan and other automotive manufacturers all over the world.
"To date we have produced over 129 million automatic transmissions and have continued to hold the global top share in CVTs [continuously variable transmissions] in the 15 years since 2008.
"The Nissan Qashqai, being produced by Nissan Motor Manufacturing in the º£½ÇÊÓƵ, is fitted with one of our continuously variable transmissions. In addition, with electrification of vehicles, we will be suppling e-axles and other electrified parts ranges to the global market. Jatco º£½ÇÊÓƵ is our first overseas production plant after our plants in Mexico, China and Thailand. And our first production plant in Europe.
"This plant will also let us participate in EV36Zero - Nissan's transformation project in Sunderland. Jatco º£½ÇÊÓƵ will be located here in Unit 6 of the International Advanced Manufacturing Park in Sunderland."
The decision by Jatco to set up the Sunderland facility is being touted by the Government as a wider mark of confidence in the º£½ÇÊÓƵ economy following a tumultuous period for º£½ÇÊÓƵ automotive manufacturing. That has seen Ford and Vauxhall owner Stellantis slashing jobs, and Nissan itself sparking concern with plans to cut thousands of jobs globally amid poor sales and financial challenges. Manufacturers have also objected to the º£½ÇÊÓƵ's Zero Emissions Vehicle mandate, forcing the Government into a consultative review.
Investment Minister Poppy Gustafsson was at the Sunderland launch event and played down the concerns when asked by BusinessLive. She said: "Look what we're seeing today: Jatco's phenomenal investment into this facility in Sunderland. The reason they're doing that is because of the brilliant people working here in Sunderland, and the brilliant skills within the automotive sector.
"When we think about the Government's goals, where is to drive economic growth and to support ambitions in terms of the green energy transition. We have to work with the private sector to accomplish that, and on the one hand we want to encourage this movement to electrified vehicles and on the other hand we don't want to do that at a pace that is too disruptive to the private sector.
"The only way that we can get that balance right is by working closely alongside the private sector and companies such as Nissan. "
