Newspaper article The Journal (Newcastle, England)

Every Nissan Job Drives Two More on the Outside

Newspaper article The Journal (Newcastle, England)

Every Nissan Job Drives Two More on the Outside

Article excerpt

The decision by Nissan to build its newest model in the North-East will secure the future of 2,000 manufacturing jobs in the region. But the effect of the pounds 125m investment will not just be felt at the Japanese firm's Sunderland plant but at sites across the region at companies that supply the car giant.

Nissan recently announced it would make its five-door compact hatchback from January 2006, safeguarding 800 jobs and creating 200 positions at its plant.

However, at least double those job numbers will be protected and created at Nissan's suppliers across the North-East.

An industry has grown up around the Washington factory to provide parts and services.

Companies such as Washington-based Unipress, which employs 890, rely on Nissan for 75pc of trade.

Magna Kansei, in Sunderland, provides plastic trim and dashboards for the Micra and has seen turnover grow to pounds 67.5m because of car production.

Alan Hall, northern director of the EEF, which represents the region's manufacturers, said: "The extension of the Nissan operation stands to bring huge benefits for the people in the region, not only in terms of huge job security and job creation, but will also have a major impact on the automotive supply chain and many local business whose business depends on the automotive industry."

The knock-on effect on local industry was also cited by Nissan as a benefit of its decision.

Colin Dodge, Nissan UK managing director, said: "For every job this car creates and safeguards at the factory, there will be at least another two jobs in the wider supply chain. This is excellent news for the North-East."

As in Huntsman's decision to invest in the North-East, government policy has played a vital role in ensuring industry remains in the region.

Nissan has received pounds 170m of government grants or regional selective assistance to subsidise the plant since its began car production two decades ago. …

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