£50 million investment secures Sunderland manufacturing plant

In a landmark deal for the UK automotive industry, Nissan and the Japan Automatic Transmission Company (JATCO), in partnership with the government, have announced a £50 million investment to establish a new manufacturing facility in Sunderland.

The state-of-the-art plant will be JATCO’s first in Europe and is expected to create 183 high-value jobs while supporting over 400 roles in the wider supply chain.

The facility will produce cutting-edge 3-in-1 electric vehicle powertrains for Nissan's Sunderland site, further solidifying the region's position as a hub for electric vehicle (EV) production.

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.”

Meanwhile, 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.”

In the meantime, North East Mayor Kim McGuinness said the car industry is synonymous with the North East, and the announcement underlines the area's 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," she said.

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.

From 2026, JATCO plans to manufacture 340,000 electric power trains annually, supplying the next generation of Nissan EVs. This development is a significant boost to the UK’s EV manufacturing sector and reinforces the country’s status as Europe’s largest EV market. It builds on Nissan’s previous £2 billion investment in the Sunderland region in 2023 to enhance its electric vehicle production capabilities.

The announcement is part of a wave of high-profile investments under the government’s Plan for Change.

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.

Minister for Investment, Baroness Gustafsson, will visit Sunderland to open the new facility and discuss how this deal will bolster the UK automotive sector’s transition to electric vehicles.