A green engineering firm is expanding into the region after acquiring the former ZF automotive plant in Sunderland - and it is also hiring some of its workforce.
Oxford based Saietta Group – which designs, develops and supplies powertrains for electric vehicles on land and sea in bases around the world – is set to onshore work from China to the North East, after signing a deal for the facility in Houghton-le-Spring.
ZF announced plans to close its Sunderland base at the end of 2020, after 30 years in the city. The firm had around 110 staff, but said it has seen volumes of orders fall significantly in recent years.
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Now AIM-listed Saietta Group has taken over the lease on the ZF site in Rainton Bridge, which it will use to accelerate its expansion plans and support the advancement of e-drive solutions, with help of former ZF staff. The move relocates e-motor production from China, delivering a a boost to Sunderland’s position as a European manufacturing hub.
The firm – which was floated on the London Stock Exchange AIM in July 2021 – aims to grow capacity to manufacture around 100,000 electric propulsion motors per year.
Saietta has also purchased four motor production lines and an electronic circuit board production line for £1.1m.
The deals sees Saietta pay an annual rent of £440,000 which will increase to £615,000 on 1 January 2023 and is subject to rent reviews in 2025, 2030 and 2035.
ZF will be ceasing operations at the Sunderland factory and, alongside the assignment of the lease to Saietta, the company has reached agreement to acquire the majority of the remaining assets contained in the Sunderland factory, such as machinery and IT equipment. With modification and additional equipment this will enable Saietta to use the assets to operate its own business at the Sunderland factory.
The move has been supported by Sunderland City Council, as well as ZF, which still has a large facility in Peterlee, County Durham.
Saietta has offered new jobs to 39 former members of ZF staff. Following their redundancy, the majority of ZF staff have already gone on to secure jobs elsewhere.
The newly appointed Saietta employees will form the basis of the firm’s operational team in Sunderland.
Duncan Hedley, former ZF Sunderland plant manager, who has been offered a role with Saietta as the firm prepares to ramp up production in the city, said: “The loyalty, professionalism and pride of the Sunderland ZF team was absolutely incredible and I’ll always be proud to have been part of such a major business in Sunderland.
“I’m very much looking forward to leading Saietta as it establishes its base in Sunderland, tapping into the talented skills base we have in the North East.”
Saietta’s move into Sunderland is a welcome boost for the city and wider regional manufacturing sector which has been boosted by a number of positive announcements, including Nissan’s EV36Zero Electric Vehicle Hub in partnership with Envision Group and Sunderland City Council, which includes Envision AESC’s new gigafactory at the International Advanced Manufacturing Park (IAMP).
Wicher Kist, chief executive of Saietta, said: “This is a landmark achievement for Saietta, providing us with a UK pilot production facility almost two years ahead of schedule, accelerating our capability to supply our innovation to clients in high volume globally.
“In addition to the lease on the large premises in Sunderland, we are also acquiring automotive production lines and are ready to employ a fantastic, proven team with decades of experience in manufacturing electric motors between them.
“The UK is a hot spot for electric powertrain innovation and we are committed to building up the engineering and manufacturing of our technology in the UK and exporting to mainland Europe and beyond. This is a very clear signal of our intent.
“I want to thank ZF and Sunderland City Council for their support. I look forward to working with the new team to make this facility a key building block in Saietta’s continued growth.”
Peter McIntyre, executive director of city development at Sunderland City Council, said: “This is a fantastic announcement for Sunderland, that will secure jobs for people from the city and further afield and increases the city’s contribution to the move towards a net-zero economy.
“We have established Sunderland as a globally recognised hub for engineering and advanced manufacturing, and to attract Saietta is further vindication of that. We’re delighted to have been able to support Saietta with its move into Sunderland and look forward to seeing them go from strength to strength in Sunderland.
“It’s been brilliant to see ZF play its part in the city’s economy over the years and in supporting Saietta’s move here too. The company leaves a proud legacy behind and has made an enormous contribution to the city over the 30-plus years it was based here, so it’s fitting that they should play a positive part in their facility’s next chapter, which will bring yet more jobs and prosperity to Sunderland.”
It is hoped the new facility will create more opportunities for local people and businesses.
Ian Constance, chief executive of the Advanced Propulsion Centre, added: “I’m delighted to see Saietta taking over this facility with plans to manufacture some of the most advanced electric motor technology, creating highly skilled jobs and retaining talent in the sector. This is yet more proof that the UK is a leader in electric vehicle innovation and is now ready to move to large-scale production and commercialisation of UK-developed technology.”
