DTI secures Nissan contract for Sunderland plant
British manufacturing may still be struggling to overcome the recent economic downturn, but the Government showed its support for the sector today with the announcement of a major regional assistance grant for the North East.
The Department for Trade and Industry has guaranteed £3.26m for Nissan to ensure that the new Micra is built at its Sunderland plant. DTI Minister Jacqui Smith said over 250 jobs will be secured by the grant which forms part of a £95m investment by Nissan in its new model.
In an industry that is losing around 10,000 jobs every month, according to the CBI, that may seem like small fry. But the Nissan plant in Sunderland is one of the great success stories of modern British manufacturing, with staff adapting to new flexible working patterns that have put them at the top of the European productivity league for the last seven years.
Nissan expects to produce 20,000 of its new Micra coupe-cabriolets every year, with the first cars going on sale in Europe in 2005.
“This is great news for the UK, Nissan and Sunderland,’ said Ms. Smith. “This assistance demonstrates the Government’s commitment to high skilled, high value manufacturing which is exactly where the UK needs to focus in order to stay ahead in the global market.”
It is hoped that the strike ballot among workers at the Sunderland plant will not jeopardise its reputation or the new contract. Staff are being consulted on whether or not to take industrial action in protest against possible plans to relocate some workers to Bedfordshire. The result of the ballot is due next week.
