£50m factory will not provide Nissan with parts
JatcoA £50m factory will no longer provide car manufacturer Nissan with the parts it was created to build.
The Japan Automatic Transmission Company's (Jatco) Sunderland site opened last year to make Nissan's three-in-one powertrain, which is used to propel the company's electric vehicles.
The plant's development received a £12m grant from the government and was expected to create 183 jobs, although only 20 people have so far been hired.
Nissan, which owns 75% of Jatco, said there would be "no immediate" job losses and the parts maker was reviewing whether the factory could design other types of powertrains.
A Nissan spokesperson said the change had been made as part of its ongoing global recovery plan, known as RE:Nissan.
"As part of this, the decision has been taken not to localise production of the three-in-one electrified powertrain to the UK," they said.
"There is no immediate impact to jobs as Jatco are continuing to study global production capacity."
Changes 'disappointing'
Jatco's factory is based at the International Advanced Manufacturing Park (IAMP), which contains a cluster of manufacturing businesses.
The plant was to begin manufacturing powertrains this year and was expected to produce 340,000 units a year.
Its opening was praised by Business Secretary Jonathan Reynolds, who said the factory would "secure hundreds of jobs" across the region and provide a boost to the automotive industry.
The UK was the fourth country where Jatco had established an overseas production plant, following facilities in Mexico, China and Thailand.
A government spokesperson said the change in the factory's use was a "commercial decision" and it would "continue to support the company and their staff where possible".
"The UK automotive industry is vital to the North East. That's why through our Modern Industrial Strategy we're delivering nearly £1bn of DRIVE35 capital and R&D funding to strengthen manufacturers and local supply chains in the region," they said.
Labour North East Mayor Kim McGuinness said she was "disappointed" the Jatco plant would not be going ahead as planned.
"I am seeking a meeting with partners on this as soon as possible as well as continuing to call for more government funding to help support further growth and development of the EV sector," she said.
"However, we remain ambitious with our plans for EV manufacturing."
