ONE NorthEast has helped boost inward investment in the region and contributed to a record year for national investment successes, figures published by UK Trade and Investment (UKTI) reveal. The latest statistics from UKTI – the Government’s inward investment arm – show there were 66 new inward investment projects in the North East in 2007-8.
In total, these projects will create 1,572 new jobs and safeguard a further 2,062 posts across the region.
Regional development agency One NorthEast was directly involved in 52 of the 66 projects, which has increased by seven new projects from 45 in 2006-7.
This increase is testament to the proactive work of the agency’s investment and aftercare team, which has focused over the past few years on developing links with potential foreign direct investors, specifically in manufacturing activities in new and renewable energy, automotive and advanced engineering.
The agency’s business finance experts within the business and industry directorate and sector specialists have also worked towards increasing the number of inward investors.
The announcement follows the recent results of Ernst and Young’s European Investment Monitor, which revealed a 50% increase in the number of new inward investment projects and expansions across the North East.
The year 2007/08 was one of high-quality investments for the North East.
Californian wind energy giant Clipper Windpower selected North East England to develop a new generation of offshore wind turbines at the world-leading blade test and manufacturing facilities at the New and Renewable Energy Centre (NaREC) in Blyth.
Japanese energy-efficiency specialists Yanmar are working with NaREC in the development of state-of-the-art biodiesel systems which could provide low-cost, clean energy for community power schemes.
And Fabricom Offshore Services Ltd is creating a base for its offshore oil and gas engineering business in North Tyneside, creating 250 jobs.
Simon Goon, One NorthEast head of business investment, said: “The statistics from UKTI are further evidence that the North East is a prime investment location for inward investors, thanks to our broad business base, commercial property, financial packages, unrivalled quality of life and internationally credible R&D and innovation activities.
“The One NorthEast inward investment team has worked on a number of high-profile projects over the past year, bringing a number of new jobs into the region that are of great value to the North East economy.”
Nigel Carlton, Fabricom Offshore Services chairman, added: “The excellent support and assistance we have received from One NorthEast in developing this exciting opportunity has been a key factor in the decision to locate the business in North Tyneside
“The engineering heritage of the North East ensures that the skills necessary for our business can be found locally.”
The 66 investments into the North East in the last financial year include new investments, expansions, mergers, acquisitions, retentions and joint ventures. This is an additional two investments on the previous financial year.
The North East has a strong inward investment record:
l There are presently 588 foreign investors based in the North East
l In total, these companies employ 72,762 employees
l The highest number of foreign investors are from North America at 195 firms.
l After North America comes Germany with 59 companies and Japan with 47.
Last year was a record for the region in attracting investment from Japan, with 14 inward investment projects secured, which safeguarded 170 jobs and created a further 107 posts in the region. This includes Nissan’s decision to build a new car at its Wearside plant, which will take up the manufacturing capacity created when Sunderland ceases production of the Micra. The plant also recently created 800 new jobs in a new third shift to cope with demand for its Qashqai model.
Key national figures from the UKTI report include:
l Total projects up 10% from 1,431 to 1,573
l 45,051 new jobs created and a further 58,488 safeguarded, bringing the total number of associated jobs to 103,539 (up 32%)
l 653 (42%) of the total were new projects and 436 (28%) of the total were expansions by existing investors
l R&D operations increased by 83% to 251 projects with high-value and R&D intensive projects representing two-thirds of the total
l Advanced Engineering projects rose by 61% to 182 projects
l Environmental Technologies projects increased by 22% to 59.
John Hutton, business and enterprise secretary, said: “These results are a ringing endorsement of the UK as an international investment destination, demonstrating that our compelling mix of a business-friendly environment, political and economic stability, world-class talent and a strong research and development base is a powerful magnet for overseas companies.”