Foreign companies step up investment in NW PLC

Overseas companies have given the Northwest a morale-boosting vote of confidence by investing a massive £10 billion in a regional economy increasingly reliant on technology and high workforce skills.

The inflow of corporate projects in the past year, many related to advanced manufacturing and R&D, had a big impact on employment with over 14,600 jobs created or safeguarded, double the number generated the previous year.

Total Foreign Direct Investment (FDI) last year jumped to £10.3 billion, dwarfing the£1.3 billion secured in 2006-07. New investments accounted for 43 of the projects(against 56 last year), expansions 72 (58) and acquisitions 41 (39).

There was a 13% increase in the number of projects secured by the region in 2007-08– 156 compared to 138. Nearly 100 had some form of public support or intervention, although only 17 received grant aid.

VOTE OF CONFIDENCE

“ These figures reflect the tremendous efforts that the Agency, our sub-regional partners and UK Trade and Investment(UKTI) have put in to maximise our potential in a very competitive marketplace – it’s very important that we continue to work together,” commented John Cunliffe, Head of Investment Services at the Northwest Regional Development Agency (NWDA).

The NWDA shares four offices in the US and has representation in Canada with One North East and partners Yorkshire Forward with an office in Tokyo.

It also has representation in Australia, access to dedicated resources with UKTI in Mumbai and is looking at how to put more resources into China.

“The latest figures demonstrate the real value added of these offices,” says Cunliffe. “I firmly believe that the role of our overseas offices is key to us being successful in attracting foreign companies. ”

Forty six per cent of projects are expansions by existing companies –“an important vote of confidence in the region’s workforce and its appeal as a competitive location for global businesses. ”

The NWDA and its partners concentrate their marketing and business support efforts on the region’s priority business sectors. Three sectors, advanced engineering, business and professional services and creative and digital, accounted for 70% of FDI last year.

Cunliffe believes that energy and environmental technologies will start to yield more investments as the UK moves into anew era of nuclear new build and there will be further investment in renewable projects.

The Japanese NSG group, which acquired innovation-led Pilkington in 2006, reaffirmed its faith in the company’s ability to keep developing new technologies by investing nearly £40 million in a new coatings facility at St. Helens in Merseyside.

Due to be commissioned in early 2009, the facility will help the company exploit opportunities in the emerging solar energy market.

“This is very high technology for a mature industry,” explained Tom Hughes, Operations Manager at the Greengate factory where the equipment is being installed. “It’s a brand new process that will allow us to create 30 new jobs and go a long way to protecting more.

NEW TECHNOLOGY

“The equipment will allow us to apply special coatings in the middle of the production process while the glass is still hot. It’s a very flexible system that will allow us to make a range of advanced products. ”

Its main job, however, will be to supply photovoltaic glass. Solar power is one of the key technologies in the renewables energy market and is part of Pilkington’s future growth strategy.

Pilkington has been at the forefront of innovation in glass-making for decades. In keeping with that tradition the company has developed a coatings process that allows the glass to be part of the photovoltaic cell itself.

The project, insists Hughes, could easily have gone to a sister plant in Germany but a £3 million Selective Finance for Investment in England grant (now known Grant for Business Investment), via the NWDA, helped the St. Helens factory clinch the deal.

“It was pivotal in making that investment come to the UK,” insists Hughes. An updated report by DTZ has revealed that although overseas companies represent only 1% of the Northwest business base they contribute 17.5% of GVA and employ over11% of the workforce.

More information about grant funding from the NWDA can be found at www.nwda.co.uk/finance