Monday, July 20, 2009
Nissan to create hundreds of jobs
Nissan has announced that its Wearside factory will start producing batteries for electric cars, which is expected to create 350 new jobs.
Prime Minister Gordon Brown said that Nissan's £200m investment "was great news for the local economy".
The plant, near Sunderland, has beaten off competition from other Nissan factories in Europe for the investment.
The move could pave the way for the production of electric vehicles at the North East plant in the near future.
"Sunderland could now be a strong contender to produce electric vehicles for Nissan in Europe, and we will continue to work with Nissan to ensure this happens," the prime minister said.
Mr Brown visited the Sunderland factory along with Business Secretary Lord Mandelson.
The BBC's Fiona Trott said that it was not clear whether the deal secured the jobs of the 4,000 people employed at the existing Nissan plant. She said 1,200 jobs had been cut earlier this year.
'Low carbon area'
Mr Mandelson said a "low-carbon economic area" would be established in the North East.
As part of the project, 750 charging points would be installed across the region and a training centre specialising in the manufacture and maintenance of low-carbon vehicles would be set up.
Nissan's £200m investment will be spread over five years and the new plant, which will make lithium-ion batteries, will also create and secure additional jobs in the related supply chain.
Nissan also announced it was setting up another battery manufacturing plant in Portugal.
'Vote of confidence'
Michael Steventon, head of automotive research at consultants KPMG, said that the announcement was a vote of confidence in the Nissan workforce in Sunderland.
"Batteries are only part of a vehicle but they are an expensive, logistically significant part," he said.
"It does mean that Nissan is more likely to manufacture electric vehicles in the UK than elsewhere in Europe," he added.
However, he said that if the UK wanted to really capitalise on the move toward hybrid vehicles, more investment in research and development was needed.
Assistance
The government said it was working with Nissan on supporting the investment by offering grants and loan guarantees, including support through its Automotive Assistance Programme.
Earlier this year, the government set aside £2.3bn to support the UK's ailing car industry - but nothing has yet been paid out.
"The North East has distinguished itself as the first specialised region for ultra-low-carbon vehicles," Lord Mandelson said.
"This is good news not just for the North East, but for the whole of the UK, helping to attract foreign investment and securing UK's place as a global leader in hi-tech manufacturing and automotive industries," he added.
TUC general secretary Brendan Barber said: "This is an excellent initiative. It combines active industrial policy and environmental transformation, pointing the way to the kind of economy we will need to build after the recession."
The announcement from Nissan comes only days after its Japanese rival Toyota said it would start manufacturing the new Auris hybrid petrol-electric vehicle at its plant in Burnaston, Derbyshire from mid-2010.
DATED: 20.07.09
FEED: AW
