THE North-East could miss out on millions of pounds of investment and skilled jobs if a car industry supplier turns its back on the region, it has been claimed.

Developer Town End Farm Partnership has admitted the unnamed company could walk away following refusal of planning consent for the Wear Point 55 scheme.

The park was earmarked as a new supply base for customers of Sunderland car maker Nissan, which is preparing to make its new Qashqai and X-Trail models in the region.

However, the council said the plans were "premature" and "inappropriate”.

Bosses at Town End said the development would have created and supported an estimated 1,350 jobs through permanent posts and construction work respectively, with one million sq ft of manufacturing space and almost 100,000sq ft of commercial space complemented by adjoining retail and leisure hubs.

But the council has turned down the proposals, saying part of the site fell within the boundary of the International Advanced Manufacturing Park (IAMP), which itself is hoping to create more than 5,000 jobs by creating a Nissan supply chain hub.

Peter Razaq, Town End director, said the threat of the supplier walking away is real as it needs to be on-site and fully operational by mid-2018, which Wear Point, rather than IAMP, would have ensured, adding it would also have demanded nothing on the public purse.

He said: “We had hoped council members would listen to our arguments and overturn the recommendation.

“It had the opportunity to bring many hundreds of jobs and tens of millions of pounds in private sector investment to the region, and to the people of Sunderland, and it said no.

“This is a hugely disappointing outcome; we know we can deliver a scheme that does not involve public funding and has an occupier wanting to commit.

“The recent examination in public of the IAMP area action plan highlighted numerous changes will need to be made, thus further delaying its adoption.

“This will be very disruptive to Nissan’s new car production timescales, which are driving the need for delivery sooner than the combined councils can achieve.”

Mr Razaq added Town End is speaking to its legal team and assessing its next move.

Nissan earlier this year revealed its near 7,000-strong job Sunderland plant will make next generation Qashqai and X-Trail models after Government talks gave assurance that Brexit won’t affect the factory’s competitiveness.

However, senior bosses have since issued caution, saying they could reconsider their decision if there are any material changes to trade agreements.