YOKOHAMA (Japan), Jan 13: Seven decades after its creation in the port city of Yokohama, Nissan Motor Co. began work on Saturday on a new global headquarters that will move it out of the Japanese capital and back to its birthplace.

The building, designed by Japanese architect Yoshio Taniguchi, will have 22 office floors overlooking the western coast of Tokyo Bay and is due for completion in late 2009 at a cost of 42 billion yen (349 million dollars).

Nissan held a groundbreaking ceremony Saturday for the new building, which is designed to resemble a sailing ship and underscores the automaker's recovery from the brink of bankruptcy.

More than 70 years ago Nissan was established here in Yokohama. From here we grew to become a global enterprise, said Nissan chief executive Carlos Ghosn, who also heads the company's French partner Renault.

We recognize that returning back to our birthplace is important for our employees but also for the community. Nissan moved to its current headquarters in the Tokyo district of Ginza in 1968 just before a period of strong expansion that propelled the company to the number two slot among Japanese automakers behind Toyota Motor Corp.

Nissan has always retained a strong presence in the Kanagawa Prefecture which includes Yokohama, including several large factories and research centres.

By moving its headquarters to Yokohama, Nissan hopes to improve the communication between the various business segments.

We cannot use a remote control from Ginza, said vice-chairman Takeshi Isayama.

Global competition is tough and consistent corporate management is a requirement. Nissan was founded in Yokohama as Jidosha-Seizo Co. in 1933 and adopted its current name the following year.--AFP