WINNING work to supply components for the new Nissan Leaf has helped drive major expansion at a North-East car parts manufacturer.

Work began yesterday on a new £8.5m plant for plastic injection-moulding firm Nifco UK, based in Stockton, which supplies components for just about every UK made car on the road.

With the expansion comes 120 new jobs, taking the workforce to 300, with the firm, which started life as Elta Plastics making heels for shoes, close to completing a deal that will see it supply components for the Leaf electric car, to be produced at Nissan’s Sunderland plant from 2013.

The firm has a longstanding relationship with the car maker, supplying its existing models with 2.5m components a month, ranging from engine parts to cup holders.

Nifco UK managing director Mike Matthews said: “The Nissan Leaf announcement was excellent news for the region.

“The main reason we are growing is because we have won the business. We are approaching the point where, by 2013, the factory will be quite full.

“We ship to 230 customers each month covering 26 global locations.

“We have had three good years and have won the same amount of work in the first three months of 2011 as we did in the whole of last year.

“We pretty much have a part in every mainstream vehicle produced in the UK, whether that be a Nissan, Honda, Ford, Landrover, Jaguar or Mini.”

The growing orders it has won has driven the firm’s expansion from its existing premises in Yarm Road to the new 130,000 sq ft factory in Durham Lane, for which it will spend an additional £11m on new equipment.

Mr Matthews believed the new plant was the first manufacturing facility of its size to be built in the area since Samsung 16 years ago, adding: “The factory we are in has been a great place to work but for us it is really nearing the end of its useful life. We would have to have spent £1.5m to upgrade it.”

Around 60 per cent of Nifco Uk’s workforce live in Stockton and Mr Matthews said: “We wanted this to be close to the existing operation in order to retain our current work force who are so integral to our on-going success. “ The groundbreaking for the new plant was performed by the firm’s Japanese senior managing director Kyohiko Fukawa. He said: “This is a great day for Nifco UK and all who work at our Stockton plant.

“These expansion plans are a real vote of confidence for Nifco UK from the parent company in Japan in the quality of the local workforce and their ability to compete internationally. “ Nifco opened its UK headquarters in Stockton in 1990 after taking over Elta Plastics, which had been at the site since 1967.

Mr Matthews also praised Stockton Borough Council and Tees Valley Unlimited (TVU) for their support with the expansion plans, as well as regional development agency One North East which helped it access £1m of funding towards the project.