Yahoo Finance Nissan to shut Sunderland engine cylinder factory in 2024
Nissan is to stop the production of cylinder heads on site at its plant in Sunderland, northern England, from early 2024, with 250 staff being redeployed elsewhere.
The automotive giant’s deal with French firm Renault to build cylinder heads is due to end in 2024.
Read more: UK property sales jump to pre-COVID levels in busiest July since 2015
But the move is not expected to result in any job losses, with all 250 employees affected due to be redeployed to other departments, according to Sky News, who first reported the story.
Revealed: Nissan’s decision to close the engine cylinder plant in Sunderland that has operated since the early 1990s has been taken for “business efficiency” reasons, and underlines the site’s acceleration towards a future dominated by electric vehicles. https://t.co/tSLuMz6mA5
— Mark Kleinman (@MarkKleinmanSky) August 23, 2022
“From early 2024, Nissan Sunderland Plant will cease production of cylinder heads on site," the Japanese car manufacturer said.
"We do not expect this to result in job losses, and are working with staff as we redeploy them to other parts of the business," Nissan added.
Read more: UK economy grinds to a near halt on the back of dwindling customer demand
The move comes weeks after Nissan's unveiling of its EV360Zero system in Sunderland, bringing together a new battery plant and locally sourced green energy to power production – a blueprint the firm said it will expand into other markets around the world. The Japanese car maker said the plan would create more 1,600 jobs at Sunderland, along with a further 4,500 in the supply chain.
Nissan's Sunderland site, which employs roughly 6,000 people, has been engulfed in speculation about its post-Brexit future for years.
Meanwhile, UK new car registrations fell by 9% in July 2022 as the sector continues to be hit by supply and semiconductor shortages.
Registrations totalled 112,162 units in July, down from 123,296 in the year earlier, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
The car industry body said it was the fifth consecutive month of decline this year, but the smallest drop in 2022 so far.
Watch: What is a recession and how do we spot one?
