Qashqai expansion in Japan will bring more work to N-E

The car manufacturer, which expects to produce about 185,000 Qashqai cars in Washington, Wearside this financial year, yesterday said it would increase capacity at its Japanese plant to meet high local demand.

The move will free up more capacity at its regional plant to serve the European market.

A Nissan spokesman said: "It will have a good knock-on benefit to local suppliers based here in the North-East.

"There are 12 local suppliers that will benefit from increased volumes as they will continue to build parts for the cars in Japan as well."

Among those to benefit is Vantec, which was set up in Sunderland in 1990 to provide dedicated material handling operations to Nissan Manufacturing UK.

The Northern Echo understands that the company is looking to take on 90 extra staff to cope with demand. Vantec was yesterday unavailable for comment.

Other suppliers to benefit include car parts manufacturers Hashimoto, of Boldon, South Tyneside; Tacle Seating UK, of Houghton-le-Spring; Unipress (UK) Ltd, of Sunderland; and Valeo, of Washington, Wearside.

French car part supplier Valeo opened its £1m production plant in Washington last year, leading to the creation of 60 jobs. Its heating and cooling division operates the site and supplies front-end parts, including headlights and radiators, to Nissan.

Sales of the Qashqai have exceeded all expectations worldwide since its European debut in February. Nissan has increased its annual production target in Sunderland from 135,000 to 185,000 and has a backlog of more than 60,000 orders.

In Japan, production of the Qashqai - known as the Dualis in the Far East - will be increased to 24,000 units per year from early next year.

In June, Nissan announced a further £2.4m investment into its Washington plant to increase Qashqai production by 20 per cent.

A company spokesman yesterday said the model will be introduced in the Middle East, South Africa and Australia in the near future.