Global automotive automatic transmission manufacturer JATCO has launched a £48.7m factory in Sunderland, creating more than 180 jobs.
Located on the International Advanced Manufacturing Park and marketed by Industrial Property Specialists HTA Real Estate, the factory will produce electrified powertrains for the nearby Nissan plant.
Initially, this will be the 3-in-1, which modularises and integrates the motor, inverter and reducer, making them smaller and lighter.
Spanning 138,840 sq ft, the facility will create up to 183 jobs.
JATCO is headquartered in Japan and has supplied more than 129 million automatic transmissions to the global automotive market since it was established in 1970.
The company holds the top share in CVTs globally for the 15 years since 2008 and hopes to reach a production capacity of 340,000 units from its Sunderland plant.
Preparations are now beginning on the fit out of the unit, and localisation of the NMUK models will begin from 2026, when the factory is scheduled for completion.
The site is close to Nissan's Sunderland facility and the UK government provided a grant to support the extension of the site.
JATCO chief executive Tomoyoshi Sato 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."
Councillor Michael Mordey, leader of Sunderland City Council and finance and investment portfolio holder at the North East Combined Authority (NECA), added: "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."
Simon Hill, Director at HTA Real Estate said " The factory will provide a very high specification facility situated close to the main Nissan Factory".