A LOW carbon enterprise zone beside Nissan in Sunderland will go ahead thanks to an EU cash injection, paving the way for new jobs and investment.

The North East Local Enterprise Partnership's enterprise zone - known as the A19 Ultra Low Carbon Vehicles Corridor – has been awarded £5.3m from the European Regional Development Fund (ERDF). Match funding of £4.8m by Sunderland City Council and a £4m loan from the North East Local Enterprise Partnership’s Growing Places Fund will enable development of 10 hectares of the zone set up last year to attract overseas investment.

When work is complete, the site will focus on the mass production of low carbon technology and advanced manufacture, helping the area to become a world leader in the emerging market for low carbon research and development.

It follows last week’s announcement that Nissan has started making the all-electric Leaf hatchback and high tech batteries at its Sunderland factory.

The planned development will lead to a site capable of accommodating about 90,000 sq m of office and factory space and create 204 temporary construction jobs.

The project is also expected to indirectly create about 1,500 new jobs and draw in £55m of private sector investment.

Building work is due to start this month and is expected to be completed by spring 2016.

Councillor Paul Watson, Leader of Sunderland City Council, said: “The North-East, and Sunderland in particular, is already a hugely important area for the UK’s automotive industry. The city’s ambitions are boosted as a result of European Regional Development Fund and Growing Places funding for the A19 Enterprise Zone.

“Earlier this year we celebrated the completion of Vantec Europe’s £22.5m new warehouse building, which is now open for business on the A19 Enterprise Zone. It is testament to the strengths of Sunderland and its Enterprise Zone that Vantec chose this site for its largest-ever overseas project. We are working hard to attract other international investors to this important site and our city.”

Paul Woolston, chairman of the North East Local Enterprise Partnership, said: "Sunderland was the first across the country to complete a new build and entrant on an Enterprise Zone site when Vantec moved onto the Turbine Business Park earlier this year.

"Pressing on with the next stage of site preparation and infrastructure works is an important part of the delivery strategy for the Enterprise Zone and for the success of this key national location."

In total, the Sunderland enterprise zone comprises an area of 32.5 hectares to the west of the A19 and north of the A1231.