Japanese car manufacturer Nissan will create more than 1,000 jobs after the company announced it is to build a new hatchback at its Sunderland plant.
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The new medium-sized model will be built in the north-east plant in 2014, creating an additional 225 jobs at the factory and 900 at component companies supplying Nissan.
The move comes after last month's announcement that the plant will also produce a compact car based on the "Invitation" model from next year.
About £125m will be invested by the company in building the model and will mean the creation of 2,000 new jobs.
In total, the two new models will result in more than 3,000 jobs being created in the UK automotive sector within the next two years.
Once recruitment for both models is complete, the Sunderland plant's workforce will stand at a record 6,225, supporting annual production of more than half a million models.
The announcement was made by Prime Minister David Cameron and Nissan Chief Operating Officer Toshiyuki Shiga, during a visit to Nissan's headquarters in Yokohama, Japan.
The move is supported by an offer of £8.2m from the government's regional growth fund.
Mr Cameron said: "It is fantastic news that Nissan will be building their new hatchback model in the UK and that they expect to create more than 1,000 jobs at the Sunderland plant and in the supply chain across the country.
"It's proof of the strength and vitality of the British manufacturing industry that leading companies like Nissan are expanding their production in the UK."
Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said: "Nissan's investment in Sunderland is great news for the industry and the broader economy.
"Manufacturing is at the heart of the recovery and with long-term investments being made throughout the automotive sector, it will play an increasingly important role in the UK economy."
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