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Nissan supplier to launch £48.7m North East factory creating 183 jobs

2025-09-18 21:32:43 By

Jatco is currently fitting out the the 138,840 sqft facility for production of electric drivetrains.

A key supplier to Nissan has signed a deal with the Government to bring a £48.7m factory to the North East, which could employ up to 183 people.

Jatco, which stands for Japan Automatic Transmission Transmission company and was formed by Nissan in 1970, is refitting and expanding a 138,840 sqft building at the International Advanced Manufacturing Park which was originally built for an automotive supplier but subsequently became the Nightingale Hospital during Covid and has been vacant since. The facility is a stone's throw from Nissan's Sunderland plant and will provide electric drivetrains for three all-electric models built at the plant: the Leaf, Juke and Qashqai.

Jatco has secured more than £12m of grant funding from the Government's Automotive Transformation Fund (ATF) towards the venture, which the Business and Trade Secretary Jonathan Reynolds has claimed is a mark of confidence in the country's economy. It follows a period of global uncertainty for Nissan which has recently entered merger negotiations with Honda in the face of falling sales and financial challenges.

Mr 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."

The new plant will be operated by new division Jatco UK and is due to be operational in 2026. From there, it hopes to ramp up production to 340,000 electric powertrains per year. The technology modularises and integrates the motor, inverter and reducer, and is said to make the drivetrains smaller and lighter.

Tomoyoshi Sato, the firm's CEO, 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.”

Jatco's investment in the North East is said to build on Nissan's multibillion-pound EV36Zero project which combines renewable energy with the production of the three all-electric models, and includes a third neighbouring gigafactory to make more batteries for the plant.

Alan Johnson, senior vice president, manufacturing, supply chain and purchasing for Nissan AMIEO, said: "This is a fantastic step forward for our world-first EV36Zero plan. Welcoming a key supplier to the North East of England provides a big boost to the efficiency of our supply chain. We look forward to continuing our long and successful partnership as we push towards our electric future."

Construction firm GMI has been appointed to carry out the extension and upgrading of Unit 6, which Jatco will occupy, having delivered the original facility in 2019.

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Hundreds of cereal factory jobs at risk as as Cereal Partners UK and Ireland proposes Wirral closure

Over 300 jobs are under threat at a Merseyside cereal factory, as Cereal Partners UK and Ireland has announced the plant might close. Cereal Partners, the producer of Nestlé cereals including Cheerios, Shreddies, and Nesquik, is consulting over the future of its Bromborough facility in the Wirral. The company has proposed shifting investment from the plant, which makes both branded and supermarket branded cereals to its Staverton factory in Wiltshire. The workforce at the Wirral site was informed yesterday about the potential shutdown, which would put 314 positions at risk if implemented. A spokesperson for Cereal Partners stated: "Cereal Partners United Kingdom and Ireland (CPUKandI) is talking to employees about proposed changes to manufacturing that would involve a £74m investment at its Staverton factory and the closure of its factory in Bromborough. Regrettably, these proposals would put 314 roles at risk of redundancy. "The Bromborough factory currently manufactures both branded and supermarket branded cereals. Under the proposals, production of branded cereals at Bromborough would be transferred to CPUKandI's Staverton site where £74m would be invested to expand the factory's capability and around 60 new roles created." The company has indicated it may cease producing supermarket branded cereals and exit that segment of the market upon the conclusion of its current contractual obligations, reports the Liverpool Echo. Explaining its reasoning, the firm highlighted: "Both CPUKandI factories are currently below capacity. These proposals would adjust CPUKandI's manufacturing footprint to better match demand and simplify our portfolio to focus investment on our branded cereals. Sales of breakfast cereal are in significant decline owing to the changing habits of UK and Irish consumers and greater competition from alternative breakfast options. "CPUKandI regrets the potential impact on employees and the immediate priority is to work together to review the proposals while supporting people through this process with care and sensitivity." The firm stated it remains open to other options, such as selling the Bromborough manufacturing facility or the supermarket-branded cereal production business itself. The spokesperson said: "It is important that discussions with employees and their representatives are carried out in a private and respectful way and our people are the first to hear of any future developments. There will be no further communication on these proposals until those discussions are complete." Concerns have been raised by a number of Bromborough factory employees, who have reached out to the ECHO. Matt Denton, GMB regional organiser, said: "This is a deeply worrying time for GMB members and their families. For three decades, CPUK has been at the heart of this community, providing good jobs and supporting countless businesses. "Three hundred skilled workers facing an uncertain future is simply unacceptable. GMB will fight to protect jobs, secure fair treatment for workers and explore all potential options to mitigate the impact of this closure. "We demand urgent talks with management and call on the company to engage with us to make sure workers' voices are heard, and livelihoods are prioritised."

Fears for Scunthorpe steelworks jobs as consultation launched on closure

British Steel's Chinese owner Jingye is launching a consultation on the closing of its blast furnaces at Scunthorpe steelworks, sparking fears for thousands of jobs at the site. Unions the GMB, Community and Unite have called on the Government to help secure the future of British Steel, which has said the closure could come at a later date if an agreement is reached. Jingye, which pointed to the impact of tariffs among the reasons for the decision, says it has invested more than £1.2bn in British Steel since it took over in 2020 and has incurred losses of about £700,000 per day. It said: "Despite this, the blast furnaces and steelmaking operations are no longer financially sustainable due to highly challenging market conditions, the imposition of tariffs, and higher environmental costs relating to the production of high-carbon steel. The company had sought support from the UK Government for a major capital investment in two new electric arc furnaces. "However, following many months of negotiations, no agreement has been reached. As a result, the difficult decision has been made to consult with employees and to consider proposals to close the blast furnaces and steelmaking operations and reduce rolling mill capacity." British Steel chief executive Zengwei An said: "We understand this is an extremely difficult day for our staff, their families, and everyone associated with British Steel. But we believe this is a necessary decision given the hugely challenging circumstances the business faces. We remain committed to engaging with our workforce and unions, as well as our suppliers and customers during this time." News of the consultation follows a plan put forward in February by Community which proposed to keep two blast furnaces at Scunthorpe while new, electric arc furnaces were built. The plan required £200m of Government support to offset carbon costs during the transition period. At the time, Community warned that if the Scunthorpe site was to close, the UK would become the only G7 country without domestic steelmaking capacity. The prompted worries over national security. Jingye said it had sought Government support for the major capital investment required for the electric arc furnaces but that months of negotiations had not yielded an agreement. Roy Rickhuss, Community general secretary, said: "This is a dark day for our steel industry and for our country. We urge Jingye and the UK Government to get back around the table to resume negotiations before it is too late. "Crucially, Jingye have not ruled out retaining the blast furnaces during a transition to low-carbon steelmaking if they can secure the backing of the Government. The closures at Scunthorpe would represent a hammer blow to communities which were built on steel, and where the industry still supports thousands of jobs directly and thousands more through extensive supply chains. "Given that we are now on the cusp of becoming the only G7 country without domestic primary steelmaking capacity, it is no exaggeration to say that our national security is gravely threatened. This would be catastrophic at any time, let alone in the current era of geopolitical instability and volatility. "Steel is an essential component of defensive infrastructure, just as it is to wider plans to invest in growth across the country. At this critical juncture, the Labour Government must do everything it can to secure the future of steelmaking at Scunthorpe - it would be unthinkable for them to let it die on their watch. "Labour has made important commitments to steelworkers, including setting aside £2.5bn towards supporting the steel sector with decarbonisation, and it is now time for Government to deploy these funds to protect the industry. "If the Government chooses to let Scunthorpe die it would make a mockery of their grand ambitions to deliver growth through massive infrastructure investment, because British Steel is our only steelmaker than can produce the construction steels the country needs for our roads, railways, schools and hospitals."

Rolls-Royce shares could rocket 50% after stellar two-year rally, analysts claim

Analysts at Bank of America have predicted that shares in engineering behemoth Rolls-Royce could surge by an additional 50% following an already impressive two-year rally. On Friday, analyst Benjamin Heelan raised his price target from 830p to 1,150p, as reported by Bloomberg, which led to a mid-day share price increase of over three per cent, as reported by City AM. This news arrived just one day after the London-listed company reinstated dividend payouts for the first time since the pandemic and announced a £1bn share buyback scheme. The appointment of CEO Tufan Erginbilgic in January 2023 marked the start of a remarkable recovery for a company that was on the brink of bankruptcy during the Covid-19 crisis. A combination of soaring travel demand and escalating military expenditure worldwide has generated significant demand for Rolls' jet engines and defence technology. Heelan noted that the firm had reaped the benefits of robust deliveries, pricing, and an enhancement in the reliability of its engines. Travel demand has remained strong over the past year, with numerous airlines, including British Airways owner IAG, reporting record profits. On Tuesday, Prime Minister Sir Keir Starmer announced the largest increase in defence spending since the Cold War. From April 2027, it is set to rise to 2.5% of GDP, with a goal to reach 3% by the end of the parliament. Rolls-Royce is targeting profits of between £3.6bn and £3.9bn by 2028 and free cash flow of between £4.2bn and £4.5bn. Over the last 12 months, shares have risen by more than 100%.

Rolls-Royce shares skyrocket as iconic company brings back dividends

Rolls-Royce has announced the reinstatement of dividends and launched a £1bn share buyback programme as its full-year profit significantly exceeded expectations. The FTSE 100 engineering behemoth, which has major UK sites in Derby and near Bristol, proposed a 6p per share dividend for investors on Thursday, marking its first payout since the onset of the pandemic, as reported by City AM. A £1bn share buyback scheme will also kick off immediately and run through 2025, according to a market statement. Shares surged over 14% in early trading as investors eagerly jumped aboard. This comes as underlying profit hit £2.5bn, comfortably surpassing a previous forecast of between £2.1bn and £2.3bn. Revenue of £17.8bn also outperformed analysts' consensus of approximately £17.3bn. Following this impressive performance, Rolls-Royce has raised its medium-term targets for profit and free cash flow. Underlying operating profit is now projected to land between £3.6bn and £3.9bn by 2028, while free cash flow is anticipated to range from £4.2bn to £4.5bn. "We are moving with pace and intensity," stated CEO Tufan Erginbilgic, who has spearheaded a remarkable turnaround in his first two years at the helm. He continued: "Based on our 2025 guidance, we now expect to deliver underlying operating profit and free cash flow within the target ranges set at our Capital Markets Day, two years earlier than planned." He concluded: "Significantly improved performance and a stronger balance sheet gives us confidence to reinstate shareholder dividends and announce a £1bn share buyback in 2025." Rolls-Royce's shares have seen a significant uptick since Erginbilgic took the helm in January 2023, driven by a potent mix of soaring travel demand and geopolitical tensions fuelling orders for its jet engines and defence technology. The company's stock price has nearly doubled over the past year and increased almost sixfold over the previous two years. "The group's turnaround has been so impressive that some of its 2027 guidance has been hit two years early, causing the group to upgrade its mid-term guidance," commented Aarin Chiekrie, an equity analyst at Hargreaves Lansdown. "Revenues are being boosted by the upward trend in engine-flying hours, which are now cruising above pre-pandemic levels. But that's just one part of the puzzle."

Bentley issues warning over China demand as profits and revenue fall

Bentley Motors has announced a decrease in profit and revenue, with its CEO attributing the decline to reduced demand in China. The luxury car manufacturer, a subsidiary of Volkswagen, reported an annual operating profit of €373m (£314m) and revenue of €2.6bn (£2.2bn), as reported by City AM. Although this profit is the sixth highest in Bentley's history, it represents a drop of over a third from the €589m recorded last year. CEO Dr Frank-Steffen Walliser informed journalists that the downturn was due to diminished demand in China, where high-end brands have been hit by lower consumer confidence. Customisation continued to bolster earnings, with unprecedented demand for bespoke models resulting in Bentley's highest-ever revenue per car, up 10 per cent year-on-year. "Despite global challenges in 2024 and the run out and replacement of three of our four model lines, financial resilience measures introduced towards the end of the last decade ensured a sixth year of consistent profitability," Walliser stated. "Looking forward to 2025, of course we continue to navigate difficult global market conditions and maintained volatile political and economic environments, however our strength of sales is strong." Bentley is in the initial stages of transitioning to an electric fleet and aims to persuade investors that there is consumer demand for a non-traditional version of its luxury models. The company plans to launch its first BEV in 2027.

Rolls-Royce CEO's pay slashed by almost £10m despite huge rise in FTSE 100 shares

Tufan Erginbilgic, the CEO of Rolls-Royce, has experienced a significant reduction in his pay by nearly £10m, despite his successful turnaround of the FTSE 100 heavyweight. The Derby-based company's latest financial year saw Erginbilgic pocketing £4.1m, a stark contrast to the £13.6m he earned in the previous 12 months, as reported by City AM. His earlier remuneration was inflated by a £7.5m compensation for earnings lost from a former job. Another factor contributing to the drop was the decrease in Erginbilgic's annual incentive plan earnings, which fell from £4.6m to £2.5m. Rolls-Royce has now introduced a changed separate bonus and long-term incentive plan scheme for its CEO, with the first LTIP not due to vest until the end of 2026. In 2023, his hefty pay package placed him as the third highest earning FTSE 100 CEO, trailing only Astrazeneca's Pascal Soriot and Relx's Erix Engstrom. However, Erginbilgic's base salary did see an increase, rising from £875,000 to £1.1m over the year, with a further five per cent hike planned for 2025. A Rolls-Royce spokesperson said: “We delivered record results in 2024 thanks to our ongoing transformation, achieving our mid-term targets two years earlier than planned and enabling us to upgrade our guidance for 2028. It is in the interests of all stakeholders that such strong performance and progress is rewarded. UK companies must be able to attract excellent talent and reward them when they deliver.” The Turkish businessman joined Rolls-Royce in July 2022 and assumed his role at the start of 2023, following a two-decade stint at BP that ended in 2020. Since succeeding Warren East as Rolls-Royce's chief executive, Erginbilgic has seen the company's share price soar from approximately 150p to over 800p. A substantial portion of this surge occurred recently – jumping from around 610p to its current level – in the wake of the defence summit in London, where European leaders expressed their support for Ukraine and committed to increasing defence spending. At the culmination of February, City AM disclosed that Rolls-Royce had decided to restart dividend payments to its shareholders and announced a bold £1bn initiative for repurchasing shares after reporting annual profits that exceeded market forecasts. Rolls-Royce's CEO hailed for spearheading 'impressive progress'. In the company's annual report, remuneration committee chair Lord Jitesh Gadhia was quoted praising the leadership team's accomplishments: "Tufan Erginbilgic and the executive team have delivered continued improvement in performance levels with impressive progress made on the group's transformation, generating real value for shareholders." He elaborated on the future targets, saying, "Achievement of the medium-term guidance will take Rolls-Royce significantly beyond any previously achieved level of financial performance and we are on track to deliver the commitments ahead of schedule." Lord Gadhia also emphasised the importance of incentivising management: "We are determined to incentivise the management to build upon the progress made and maintain momentum."

Cheshire's Packaging One doubles workforce having secured seven figure funding deal

Jobs have been created by family-run Packaging One following a seven-figure funding deal from NatWest and Royal Bank of Scotland. The provider of protective wrappings and boxes, among other products, intends to double its workforce to 80 people following the funding injection. Expansion into the firm's 44,000 sqft premises in Middlewich has given Packaging One increased manufacturing capabilities by about 70% amid a recently secured contract with an unnamed customer described as a 'global tech giant' for its patented MediaWrap product which is used for protecting trade-in and recycled mobile devices. Packaging One was set up in 2008 and is run by husband-and-wife team Ian and Emma Chesworth, who have more than 30 years' experience in the industry. The business' operations span the UK, Europe and USA Mr Chesworth, director of Packaging One, said: “The expansion is a huge step in our growth and development. Not only is it good for our business but we are proud to be able to contribute to our community by creating new jobs and employing local people.” Fellow director Mrs Chesworth added: "We have been working with the NatWest team for almost two decades. Over that time, they have partnered with us to support our business and helped us reach key milestones around our growth and expansion." Claire Morley, senior relationship manager at NatWest, said: “We are thrilled to support Ian, Emma and the Packaging One family as they begin a new chapter in their business development. As the UK’s biggest bank for small businesses, we work collaboratively with customers to understand their needs and help them find solutions to support their businesses as they grow.

Spirax Group reports fall in full-year profits amid restructure

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North East automotive sector could see thousands of jobs created once current 'turbulence' is overcome

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Cranswick beefs up margins targets as it partners with Sainsbury on £61m project

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