Japanese car maker Nissan has announced said it will spend 200 million US dollars to build a new hatchback at its UK Sunderland plant which will create 1,000 new UK jobs.

David Cameron who is on a trade visit to South East Asia welcomed the news and said Britain also needed to make, sell and export more.

"We need to get our economy moving, we need to make more, we need to sell more, we need to export more, Japan is the third largest economy in the world, it is a huge customer for British goods, it is also a massive investor back into Britain and the news today that Nissan will make a new hatchback in Sunderland is going to create thousands of jobs in our economy. So, I am here to invest, to encourage investment in Britain, but also sell things to Japan."

The as yet unnamed car, will go into production in 2014 and create 225 jobs at its Sunderland factory and 900 more at the car maker's British suppliers.

This news top of Nissan's commitment to produce its newest compact vehicle in Sunderland and will take manufacturing capacity at Britain's biggest car plant beyond 550,000 vehicles a year.