Japanese car giant Nissan is to build a new hatchback at its UK plant, creating more than 1000 jobs at the site and at component companies, it was announced today.

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.

The move follows an announcement last month that the north-east plant will also produce a compact car based on the so-called Invitation concept model from next year.

The two new models will result in more than 3000 jobs being created in the UK automotive sector within the next two years – 625 at Nissan and the remainder across the supply base.

Once recruitment for both models is complete, the Sunderland plant's workforce will stand at a record 6225, supporting annual production of more than 500,000 models.

Nissan said the new hatchback, which will be named closer to its sales launch, marks the carmaker's return to the mainstream medium segment in Europe and 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.

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.

Mr Cameron said: "It is fantastic news that Nissan will be building its new hatchback model in the UK and that it expects to create more than 1000 jobs.

"Nissan's investment is a huge vote of confidence in the skills and flexibility of the UK workforce."