The two-litre petrol engine is being built at the firm's plant in Sunderland as part of a 15 million investment programme over the next few years.
Around 60,000 of the engines will be produced each year, safeguarding 130 jobs and creating up to 200 additional posts by 2013.
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Hide AdKevin Fitzpatrick, Nissan's UK vice-president of manufacturing, said: "Today marks an important new stage in engine production in Sunderland."