LONDON: Japanese automobile manufacturer Nissan is selling land at its plant in Sunderland to fund setting up a new logistics center at the site.
A deal involving the company and property developers Wilton and Clugston is expected to create some 4,000 jobs. The logistics center, which will be an extension to Nissan's Wearside plant, is expected to cost 4.5 million pounds. Wilton and Clugston will build a new business park, a hotel, light industrial building and warehouses on another part of the site.
The deal was facilitated by Sunderland City Council and the regional development agency One NorthEast.
Nissan said the work on the logistics center will begin in May and the center will become operational by February 2008. Nissan's senior vice president of manufacturing, Europe Trevor Mann said the facility will handle inbound parts for the Sunderland plant.
By bulk sourcing parts, the company will make significant cost savings, which will help the plant to improve competitiveness. This will place it in a stronger position when bidding for future models, he added
Alistair Darling, British secretary of state for trade and industry, welcomed the development and added Nissan has contributed a huge amount to the local and national economy. The new business park can bring more jobs and investment to the area, which is growing all the time, he added.
