NISSAN is helping to drive a manufacturing recovery with overseas demand for its vehicles.

The firm, which employs 4,900 staff at its Sunderland plant, revealed that last year was a record year for production of its cars, due, in part, to the popularity in particular of the Nissan Qashqai and the new Nissan Juke.

In total, there were 423,262 vehicles manufactured in Sunderland last year, of which 81 per cent were exported, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

News of Nissan’s ongoing success coincided with business organisation, the Confederation of British Industry (CBI), revealing renewed optimism in the UK manufacturing sector, based on the results of its quarterly industrial trends survey.

The CBI said a 32 per cent increase in output over the last quarter to January was being driven primarily by growth in export orders.

Its chief economic advisor Ian McCafferty said: “The recovery in the manufacturing sector is firmly in place and looks set to continue.

“Production has been boosted this quarter by a strengthening in both domestic and overseas demand and, over the next three months, companies expect further growth, driven by another rise in export orders.”

Liz Mayes, assistant regional director with the CBI, added: “Our manufacturing survey reflects Nissan’s results, and we are certainly seeing more positive signs from the North-East manufacturing community.

“As a net exporter the region is well-placed to make the most out of growing demand from overseas, and while there is still a great deal of caution from business about the rate of recovery, examples like Nissan show that the region can make a strong contribution to UK economic growth.”

Last year, Nissan surpassed its previous record for production at Sunderland, which was 386,555 vehicles in 2008 after a fall due to the global financial crisis.

It has been the UK biggest car producer every year since 1998. In January it produced its sixth millionth car at the Sunderland plant since operations began in 1986.

The firm is also investing in electric vehicle technology, in the shape of the new Nissan Leaf, which will be manufactured at Sunderland from 2013. Nissan’s vice-president for manufacturing in the UK, Kevin Fitzpatrick said: “Last year was a landmark year for the plant and represents a superb achievement by our workforce. By focusing on cost competitiveness, quality and being responsive to fluctuating customer demand, we have experienced significant growth in our operation where others may have declined.

“This winning formula will be the key to securing future new products and continued growth.”