David Cameron is travelling to Japan and south-east Asia in a bid to boost investment in UK businesses.
A new model will roll off the production line at the largest car plant in the country. It will boost job prospects and the local economy.
Japanese car giant Nissan has delivered a huge boost to the economy by announcing plans to build a new model, creating 2,000 new jobs.
Car giant Nissan is to build a new luxury model in the UK, creating 1,000 jobs with a £250 million investment.
The new global model will be manufactured at the Japanese firm's plant in Sunderland, which employs 6,000 workers.
The car, built under Nissan's Infinity premium brand, is set to be produced from 2015.
Read more on ITV Tyne Tees.
Nissan's decision to manufacture a new model at its Sunderland plant is "a huge vote of confidence" in the UK, according to the Vice-President of UK Manufacturing Kevin Fitzpatrick.
He told the BBC: "This will put the plant under 24-hour running so it is a big boost."
He did not reveal any details about the new model except that it would be a "c-type hatchback" and would aim to compete with cars like the Ford Focus.
David 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."
Nissan said the new hatchback, which will be named closer to its sales launch, will play a major role in the company's continued expansion.
Around 80,000 of the new hatchback model will be built annually, triggering the need for the Sunderland plant to launch an additional shift.
This will see both the factory's production lines operating around the clock for the first time in the plant's 26-year history, a move which will take manufacturing capacity beyond 550,000 units.
Japanese car giant Nissan is to build a new hatchback at its UK plant, creating more than 1,000 jobs at the site and at component companies, David Cameron will announce during a visit to the company's headquarters in Yokohama, Japan.
The new medium-sized model will be built in Sunderland in 2014, sparking an additional 225 jobs at the factory and 900 at component companies supplying Nissan.
- Each year the UK produces over a million cars and vehicles and over two million engines
- Industry employs over 700,000 people
- In 2010 75% of vehicles manufactured were exported
- Vehicles and parts are exported to over 100 markets worldwide
Tyne Tees News took a look inside the manufacturing plant that will be producing Nissan's new car next year.
The Sunderland plant has produced more than six million cars over the past half a century.