JAPANESE carmaker Nissan this morning delivers a £250m pre-Christmas boost to the region when it announces plans to build a new luxury model at its Sunderland plant and create hundreds of jobs.

News that the 35,000 Infiniti premium hatchback will be made in the North-East from 2015 comes two days after the plant hit the half a million vehicles mark this year - a UK record.

The Northern Echo: The Infiniti Etherea - from 2015 the production version will be made in Sunderland

The decision, which was finally signed off this week, means Sunderland will become only the second factory outside Japan - and the first in Europe - to make cars for Nissans luxury arm.

It will also become one of the most important, because the new model - a production version of the Etherea concept car - is expected to be Infinitis global best-seller that plays a key role in establishing the brand in Europe.

The announcement comes just days after Cleveland Bridge, in Darlington, secured its future with a multi-million pound contract to supply girders for the new Forth Road Bridge, in Scotland.

And it will strengthen confidence that manufacturing in the region is finally emerging from the recession.

Nissan will spend 250m on new production lines capable of making up to 60,000 Infinitis every year.

It will launch a recruitment drive for 280 additional workers that will see staff numbers at the plant soar to 6,400 by 2015. The deal will also support about 1,000 jobs at other car parts makers.

To make room for the new model plans to build a hatchback model at the plant from 2014 will be now scrapped.

Vince Cable, the Business Secretary, who will be at the plant this morning to confirm the deal, said: "Sunderland will be the only place in the world to make this new premium compact car.

"Nissan in the UK goes from strength to strength, not only will the new car be made here and exported all over the world, the UK has already contributed to its design and development.

"This news is a strong endorsement of the quality of Britains car industry, which is creating jobs, taking on apprentices and contributing to building a stronger economy. The auto sector is living up to being one of the great success stories of our industrial strategy and a testimony to government and private sector working together in close partnership."

Colin Dodge, Nissans executive vice president and chief performance officer, said the deal reaffirmed Nissans commitment to UK manufacturing and the ongoing success of the factory.

Sarah Green, regional director of employers organisation the CBI, said: "The North-East should celebrate the fantastic contribution of the Nissan local management team and the workforce at the plant in securing another 250m investment for Sunderland and a further 1,000 British manufacturing jobs."