JAPANESE car maker Nissan’s announcement it will build its new luxury model in the North-East, creating hundreds of jobs, has been welcomed by the region.

The decision to make the £35,000 Infiniti hatchback in Sunderland, signed off this week, means the plant will become the first in Europe, and the second outside Japan, to make vehicles for Nissan’s luxury arm.

It will give the region a £250m investment boost and create 280 direct jobs, supporting about 1,000 in the supply chain.

The announcement, which follows securing new compact vehicle Invitation earlier in the year; the plant launching Nissan’s first lithium-ion battery production facility outside Japan; and the Nissan LEAF production secured in 2013, ends a unparalleled year for the Sunderland plant.

Suppliers welcomed the news, with Mike Matthews, managing director of Nifco and European operations officer, saying that the announcement was fantastic for Nissan, but equally good news for the firm’s extensive local supply chain.

“Nissan is an important customer of Nifco’s, so good news for them is inevitably equally positive for us.  This really is the beauty of the strong local supply chain that Nissan has established as it multiplies the impact of good news.

“The investment going in to Nissan in Sunderland represents a significant vote of confidence in the skills and ability of the team both there and indeed those of the businesses that form its supply chain – it’s another fantastic day for manufacturing in the North East.”

Martin Kendall, managing director of Vantec Europe said: “This is very exciting news for Nissan and for everyone at Vantec Europe. We wish Nissan continued success with this new model when it is introduced in 2015.”

Paul Woolston, Chair of the North East LEP, said: "The confidence shown by Nissan in its Sunderland plant to deliver this new model is due to the quality of the management and workforce in the region.

“It is also testament to the company’s many north eastern suppliers who ensure this remains one of the most productive places in the world to build cars, and the boost for employment in Nissan and the supply chain is a great way to end the year.”

Councillor Paul Watson, Leader, Sunderland City Council said:  “This is excellent news for Sunderland and the wider region.

“The automotive industry already employs more than 12,000 people in Sunderland and this is a real vote of confidence in the plant, the city and its workforce. Nissan’s Sunderland plant is already recognised as one of the world’s best.”

NECC Chief Executive, James Ramsbotham, said: “The importance of Nissan to the regional economy cannot be overstated. For every person employed by the company around four are supported in Nissan’s supply chain and with employment at the plant reaching record levels in 2012, this is another welcome achievement.”

North East Lib Dem MEP Fiona Hall said: "In large part this is a result of the great faith the company has in North East manufacturing.

"We should be proud as a region to be home to the most efficient car factory in Europe."

Unite national officer Tony Murphy said: "The decision to build the first premium product in the North-East is a massive vote of confidence in the skills and expertise of the workforce.

"Britain is now a major hub for motor manufacturing excellence. Investing in the UK motor industry and working positively with the union does create wealth."

Charl Erasmus, chief executive of SW Durham Training, a North East training provider specialising in manufacturing and engineering courses, said: “The North East is fast growing its reputation as a hub for engineering and manufacturing, and the availability of highly skilled people here is something that only serves to make it an even more attractive place to invest.”