‘Everything is in place, we have the perfect storm’ (From The Northern Echo)

‘Everything is in place, we have the perfect storm’

8:10am Friday 19th March 2010 in

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IN only 51 weeks, the North-East’s plans to become a world-leading centre for lowcarbon vehicle expertise have gone from a theory to a dramatic reality.

On March 20 last year, Nissan and development agency One North East signed a memorandum of understanding, in the presence of Business Secretary Lord Mandelson, to explore the possibilities of a zero-emission vehicle programme for the UK, including a feasibility study into the introduction and manufacture of electric vehicles in the region.

At Nissan’s Sunderland plant yesterday, as the official announcement about Leaf was made, a clearly delighted Minister for the North-East, Nick Brown, said: “It shows what we can do if we all stick together.”

It is hard to think of an opportunity seized so enthusiastically.

Less than a year later, the region is poised to build the world’s first mass-produced electric car, is going to be home to probably the most advanced battery manufacturing plant in Europe, is the UK’s low-carbon economic area for low-carbon vehicles, is building an £8.4m national Skills Academy for Sustainable Manufacturing, is developing an open access test track and is installing more than 1,300 electric vehicle charging points.

Andy Palmer, senior vicepresident responsible for Nissan’s worldwide electric vehicle strategy, gave a strong indication that the North- East’s backing for electric vehicles had played an important role in winning the Leaf contract.

He said: “Thanks to the UK’s firm commitment to a low-carbon future in terms of infrastructure, customer incentives and educational programmes, Nissan Leaf will be built at Sunderland.”

Mr Brown, who will be buying a Leaf, said: “This is one of the biggest announcements ever to happen to the region.

“It is tremendously exciting news. I cannot remember an announcement as significant for the North-East since Nissan announced it was planning to locate here.”

One North East chairwoman Margaret Fay said she was absolutely thrilled by the announcement and admitted it had been nail-biting waiting to see whether Sunderland would be chosen.

Describing it as “another industrial revolution” she was sure it would attract other companies and jobs to the region, with the Turbine Business Park, in Washington, Wearside, earmarked as a location for these firms.

Mrs Fay said: “The test track will be open access, so any car maker can come here to test new vehicles, it is a great draw to get them into the region. We have the infrastructure in place, we have the perfect storm.

“If you are looking at where to locate something and go down and do the pluses and minuses, we have to be at the top of the pluses because we tick every box.”

Lord Mandelson said: “This investment is a fantastic vote of confidence in the Sunderland plant and its excellent workforce.”

Andrew Sugden, director of membership and policy at the North East Chamber of Commerce, said: “Manufacturing the new Leaf in Sunderland is yet another glowing endorsement both of the Sunderland workforce, Nissan’s wider supply chain and the region’s growing strength in the low emission vehicle sector.

“This announcement is particularly important because it puts in the infrastructure for the North-East to become a world leader in low emission vehicles.”

Sunderland had been favourite to win European Leaf production since the announcement last summer that Nissan’s electric car battery plant would be sited next to the present factory.

Yesterday, it was announced that construction of the battery plant would begin next month and start manufacturing batteries in 2012.

Manufacture of the Leaf will begin the following year.

Nissan’s commitment creates and preserves about 2,250 jobs. This includes 200 new jobs at the battery plant with 600 in the supply chain.

The Leaf itself will secure 360 jobs on the Nissan factory production line with a further 1,090 in the region’s supply chain.

Lord Mandelson said the Government is to commit £20.7m under the Grant for Business Investment scheme for the production of the car and the battery plant.

This will support total investment of more than £420m by Nissan in its UK operations.

There is also a proposed finance package from the European Investment Bank of up to £197m.

Nissan plans to make up to 50,000 vehicles and 60,000 batteries a year.

■ Lord Mandelson yesterday announced that the Government has agreed to back Ford’s proposed £1.5bn investment over five years for the development of environmentallyfriendly engines and vehicle technologies.

The Government will provide £360m in loan guarantees towards six projects.

The guarantee will back a proposed loan of £450m, which is being considered by the European Investment Bank.

Ford’s plans will safeguard about 2,800 skilled jobs in the UK at its research and development centre in Dunton, Essex, as well as its manufacturing plants in Dagenham, Southampton and South Wales.