Japanese automaker Nissan has announced it will invest £100 million in its UK plant in Sunderland, in order to build the new Juke model.

It is believed that the investment will secure 6,700 jobs at the plant and more than 27,000 in the supply chain. The plant in Sunderland is one of the most productive plants in Europe, producing 500,000 cars last year.

The Japanese company, which employs 6,700 at the factory directly, said the decision demonstrated it was the “undisputed leader” in the so-called crossover vehicle market.

The design of the new Juke will be completed by engineers in London and Bedfordshire. The Sunderland plant currently makes the Qashqai, Note and electric Leaf models. The new Juke model first entered production in 2010 following more than 22,000 pre-orders.

Chancellor George Osborne hailed the announcement as “fantastic”, and said that it was “an important sign of Britain being chosen as a global leader in car production”.