Nissan Motor Co. has started production of its new Note subcompact model at its factory in Sunderland, northeast England, the carmaker said today.

The move follows a 125 million pound ($198 million) investment at the site, which was secured with a 9.3 million pound grant from the UK government’s Regional Growth Fund.

Nissan also applied last month for permission to further extend its Sunderland factory, where it plans to produce the Q30 compact model for its premium brand, Infiniti, starting in 2015.

The Sunderland plant, which made its first vehicle in 1986, produces about 500,000 vehicles annually. This is expected to increase to more than 550,000 in the coming years.

In addition to the Note, the plant builds the Qashqai compact crossover, the Juke small crossover, and the electric Leaf.