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Inflation cools as economy continues to expand
The UK economy grew at its fastest
rate for two and a half years in the final quarter of 2006, with growth in
gross domestic product (GDP) rising by 0.8 per cent from the previous
three-month period, and by 3 per cent compared with the same quarter of
2005. This meant that overall the economy grew by 2.7 per cent in 2006, up
from 1.9 per cent in 2005 and close to Chancellor Gordon Brown’s forecast
of 2.75 per cent. Growth was driven by the services sector, which expanded
by 1 per cent in the final quarter. Within this sector, the output of the
distribution, hotel, catering and retail sub-sectors expanded by 1.8 per
cent, the fastest rate of growth for nearly five years. However, the
industrial sector contracted by 0.2 per cent, as unusually warm winter
weather reduced demand for utilities.
Inflation dipped sharply in January, down 0.8 per cent, driven by lower
fuel costs, cheaper European air travel and cheaper food and drink. This
was the sharpest monthly fall in the consumer price index (CPI) since
January 2003 and it left the annual rate of inflation at 2.7 per cent,
down from 3 per cent in December (which was the highest rate of inflation
for 11 years). January was still the ninth consecutive month in which CPI
inflation was above the government’s target of 2 per cent, but the
improvement was thought to have influenced the Bank of England to leave
interest rates unchanged at its monthly meeting in February.
Annual inflation in the retail price index, which includes interest
payment on mortgages, fell from 4.4 per cent in December to 4.2 per cent.
A further rise in interest rates has been widely predicted, but this could
be headed off by recent cuts in gas and electricity prices, which are
predicted to trim around 1.2 per cent from CPI inflation during the course
of 2007.
Manufacturers had a promising start to 2007, with the latest monthly poll
by the Chartered Institute of Purchasing Supply and the Royal Bank of
Scotland showing a main index of manufacturing activity at 52.8 in
January, up from a revised 52 in December. New orders increased
significantly for the first time in five months and production grew in
most sectors, with intermediate goods performing particularly well. The
improvement was led by the domestic market, though there was also strong
demand from the Asia-Pacific region, led by China and India, and to a
lesser extent the US. CIPS/RBS said, however, that there was evidence that
the strength of sterling against the dollar was curtailing sales to the
US.
Tata Steel wins
out in Corus takeover battle
Indian firm Tata Steel has won out in a battle with Brazilian rival CSN to
take over Anglo-Dutch steel-maker Corus, the UK’s leading steel producer.
Tata tabled a winning bid of $11.3 billion to clinch a merger deal that
will create the fifth-largest steel producer in the world. Corus, which
was created from the merger of British Steel and Dutch firm Hoogovens,
employs 47,300 people worldwide, including 24,000 in the UK at plants in
Port Talbot, Scunthorpe and Rotherham.
Corus plant at
Port Talbot, Wales
Tata Group, based in Mumbai (Bombay)
initially tabled a bid of $8.2 billion in October and saw a revised bid of
$9.4 billion recommended for acceptance by the Corus board in December,
before CSN entered the fray with a higher offer of $9.8 billion. Ratan
Tata, owner of Tata Steel, said of his company’s victory: “Tata has a
global scale now. This is the first step in showing that Indian industry
can step outside its shores into an international market as a global
player.”
Another Indian company, outsourcing giant Wipro, is to expand its
operations in the UK, creating 500 new jobs in 2007 to boost its existing
UK workforce of 2,000. The company already has a base in Reading in South
East England, and will establish new operations in other areas of the UK,
including Birmingham in the West Midlands. It plans to send workers to
India for several months to fully train in its methods and processes. A
number of leading Indian IT companies are also expanding their Western
operations in a bid to become truly international players. Tata
Consultancy Services, for example, has more than 3,000 staff in the UK,
while Infosys, which has 1,500 employees in the UK and 60,000 worldwide,
last year embarked on a drive to recruit UK graduates, as it expands its
European operations.
Indian
companies lead the way in bio/pharma investment
Indian companies are also emerging as prominent investors in the UK’s
pharmaceutical and biotechnology sectors. For example, Reliance Life
Sciences Pvt Ltd, an affiliate of Reliance Group, India’s largest private
sector enterprise, is to invest $64 million in GeneMedix, a
biopharmaceutical company based in Newmarket, Suffolk in Eastern England.
GeneMedix has operations in Europe and is listed on both the London and
Singapore stock exchanges. The company was set up to develop a range of
generic biopharmaceuticals (known as ‘Biosimilars’) and has three of the
largest products on the market under development. These include EPO, a
stimulant of red blood cell production; G-CSF, another chemotherapy
adjunct; and Interferon-alfa, which is used in the treatment of Hepatitis
B and C. The alliance with RSL will accelerate the rate of its current
programmes and allow it to develop new products.
Also in Eastern England, Panacea Biotec – the second largest vaccine
producer in India – has acquired a 10 per cent stake in Cambridge
Biostability Ltd (CBL) for around $4 million, as part of a joint venture
agreement between the two companies. CBL, a pioneering developer of
temperature-stable liquid vaccines, has also signed a long-term licensing
agreement with Panacea Biotec. Under this agreement, the Indian company
will license CBL’s stable liquid technology to develop a stable liquid
version of pentavalent and other combination vaccines, for the treatment
of diseases in children such as diphtheria, tetanus, whooping cough,
Hepatitis B and haemophilus influenza B.
The product will be unique in that it will not require cold chain storage
or reconstitution before use, meaning that it can be used in remote areas
and under extreme temperatures. The worldwide market for such vaccines is
estimated at 300 million doses per year, with key customers being
international organisations such as Unicef and national governments, with
whom Panacea Biotec has built longstanding relations. The company expects
to start clinical trials of the vaccine in 2008, with a global product
launch expected in 2010.
German biotech company MorphoSys meanwhile has opened a new international
headquarters for its research antibody division, AbD Serotec, near Oxford
in South East England. The company has consolidated several existing UK
facilities into a single research centre, which will also coordinate its
research activities worldwide. AbD Serotec specialises in innovative
technologies for the production of synthetic antibodies used to accelerate
drug discovery. “The Oxford region provides us with a strong
infrastructure and a high concentration of excellent academic researchers
and innovative biotechnology companies – both potential customers for our
technology,” said Dr Simon Moroney, CEO of MorphoSys.
Scottish
researchers lead the way in life sciences
Scottish Enterprise is to invest $32 million to help develop a
world-leading centre for excellence in regenerative medicine and stem cell
research in the Scottish capital Edinburgh. The Scottish Centre for
Regenerative Medicine (SCRM), which will cost a total of $118 million,
will be developed by the University of Edinburgh and will be one of the
flagship buildings at the new Centre for Biomedical Research in the city’s
Little France district.
The new facility, which will provide cutting-edge research facilities,
manufacturing capacity and facilities for commercialisation, will be
unique within Europe and will be rivalled internationally only by a
facility in Kobe, Japan. It will have three main elements: high-quality
accommodation supporting 220 academic researchers, a centre for the
‘scale-up’ development and manufacture of stem cells and multi-occupancy
space that will house commercial regenerative medicine research
organisations and spin-out companies.
In Glasgow, a new $19 million research programme to develop stem cells for
pharmaceutical research has been launched by Dundee-based ITI Life
Sciences, in collaboration with the University of Glasgow and Swedish
biotech company Cellartis. The three-year programme will focus on
developing an automated process to produce high-quality human stem cells,
a world first that will put Scotland at the forefront of stem cell
research. Work will be carried out at the University of Glasgow’s
faculties of Medicine and Biomedical and Life Sciences, which have
world-class expertise in the molecular mechanisms that control cell
signalling and development. Cellartis, one of the world’s leading stem
cell companies, will set up an R&D and manufacturing centre in Dundee.
Meanwhile six Scottish universities, in collaboration with the Scottish
Funding Council (SFC), are investing $154.8 million over the next five
years to transform biology and life sciences research in Scotland. The
universities of Aberdeen, Dundee, Edinburgh, Glasgow, St Andrews and
Strathclyde will pool their research expertise in the new Scottish
Universities Life Sciences Alliance (SULSA), creating 18 new research
posts and 24 support posts in the process. Initially the areas SULSA will
focus on include cell biology, systems biology and translational biology,
which concerns the application of biological knowledge to develop
medicines and therapies for clinical use.
Industry
initiatives to harness leading-edge technology
Europe’s first state-of-the-art waterjet machining technology centre is to
open at the University of Nottingham in the East Midlands. The
University’s School of Mechanical, Materials and Manufacturing Engineering
will join forces with Rolls-Royce, the East Midlands Development Agency (emda)
and the Midlands Aerospace Alliance to set up the $2.2 million facility,
which will explore new ways of using waterjet technology to create parts
for the aerospace industry. Waterjet cutting technology is one of the
fastest-growing machine tool processes in the world; engineers at the
centre will use a six-axis waterjet machine, capable of cutting
three-dimensional parts from blocks of metal, to develop new processes and
techniques.
The government is to contribute $17.4 million to a project that will
provide computer technology to assist in the next generation of aircraft
design. The $34.8 million CFMS Core Programme will be conducted by a
consortium led by European aircraft manufacturer Airbus, which is also
leading another project backed by the Department of Trade and Industry
(DTI) to develop wing technology. The project will involve computer-based
technology that will dramatically streamline the design process for new
aircraft, reducing testing periods and slashing time to market. It is also
expected to benefit the marine and automotive industries. By 2012 it is
thought that software simulations will replace physical testing
completely, meaning that some parts of the aircraft design process could
be reduced from 350 days to 36.
A new International Marine Design Centre based in Newcastle in North East
England is to provide a focal point for the region’s ship design industry,
marketing its skills worldwide in a bid to attract new contracts. The $4.6
million centre will provide common user facilities for local firms to
carry out project work, allowing them to place up to 40 designers in the
centre at any one time. Support will be provided by three full-time
industry experts based in central Newcastle. The facility will be run by
business development company Northern Defence Industries (NDI), and will
have close links with Newcastle University’s School of Marine Science and
Technology.
Landmark for renewables sector as
wind capacity passes 2GW
The UK has become only the seventh country in the world to have more than
two gigawatts (GW) of operational wind power capacity. The milestone was
passed when the Braes O’Doune wind farm near Stirling in Scotland went
into operation, in what was described by Trade and Industry Secretary
Alistair Darling as a “significant landmark” for the UK’s wind industry.
An output of 2GW is equivalent to two coal-fired power stations. The Braes
O’Doune wind farm has a generating capacity of 72 MW, enough to power
45,000 homes in the area, according to the British Wind Energy Association
(BWEA).
The government has set a target of generating 10 per cent of the UK’s
electricity from renewable sources by 2010, and the latest figures show
that currently 4.2 per cent of Britain’s power comes from sources such as
wind, solar, hydro and biomass. The UK is now the seventh largest producer
of wind energy in the world, behind Germany, Spain, the US, India, Denmark
and Italy. Germany is by far the word leader in this technology with a
wind generating capacity of 20,622 MW, nearly twice that of its nearest
competitor.
Plans are being developed for what will be the world’s biggest wave farm,
to be set up at a site in Scotland. Leith-based company Ocean Power
Delivery has been testing its Pelamis marine energy device at the European
Marine Energy Centre on the island of Orkney. Scottish Power wants to
commission four more devices at the same site, in a venture that it
believes could generate power for up to 2,000 homes. The Scottish
Parliament will contribute $26 million in funding to allow further
machines to be tested. The Pelamis device, which consists of large tubular
segments, has already been trialled at a commercial wave farm off the
north coast of Portugal. “Wave and tidal power could supply a fifth of the
UK’s electricity needs and Scotland is ideally placed to generate
significant amounts of this pollution-free energy,” said Duncan McLaren,
chief executive of Friends of the Earth Scotland.
Pelamis
At the other end of the country, in Cornwall, the South West of England
Regional Development Agency (SWRDA) is seeking wave device developers for
its proposed $40 million Wave Hub project, the world’s first large-scale
wave energy farm. It has already identified three companies to collaborate
on the experimental scheme, which is located off the coast near Hayle,
among them Ocean Power Delivery with its Pelamis device. The Wave Hub will
provide a grid-connected 2 sq km area of sea within which arrays of wave
energy conversion devices will be tested over a period of five years,
allowing companies to gain experience that can be used for future
commercialisation. Up to four different types of device can be
accommodated at any one time. The Wave Hub involves the construction of an
electrical ‘socket’ on the ocean floor – a sub-sea transformer that will
be able to deliver up to 5 MW of electricity to the local network. It is
expected to be operational by summer 2008.
The UK is also diversifying its sources of energy supply with a new liquid
natural gas (LNG) project on Teesside in North East England. Led by
US-based company Excelerate, the project involves the world’s first
dockside regasification facility, which allows liquid gas to be converted
on-board ship instead of ashore, making it quicker to deliver and reducing
impacts on the environment. The project has been completed in the fastest
ever time to market of any LNG facility anywhere in the world, with
construction work to lay three pipelines, build the loading arm and
refurbish the jetty being finished in less than a year. Kathleen
Eisbrenner, president and CEO of Excelerate Energy, said: “The combination
of a clear regulatory process and a constructive commercial environment
allowed Excelerate to bring Teesside GasPort online in only 12 months, [a]
world first. We look forward to many years of serving the natural gas
supply requirements of the United Kingdom.”
Business park schemes to provide
high-spec units
The North East is set to get two new business park developments in the
near future. In Hartlepool, work has begun to build a range of
high-specification business units at the Queen’s Meadow Business Park. The
development will provide seven commercial units ranging in size from 4,424
sq ft to 9,810 sq ft, incorporating office and production/storage areas in
a variety of layouts. All the buildings will also incorporate a range of
environmental features; completion is expected by autumn 2007. In Tyneside,
the latest phase of the Newburn Riverside business park will comprise
50,000 sq ft of Grade A office space and 160,000 sq ft of industrial
space, available for sale or to let. Work will begin on the 12-acre
mixed-use site in the summer, with the development forming the gateway to
the 230-acre business park.
Newburn Riverside
The Northwest Regional Development
Agency (NWDA) is investing $9.2 million in infrastructure to support a new
international business park at Edge Lane in Liverpool. The development, on
the former site of a Marconi plant, is within the city’s Eastern
Approaches Strategic Investment Area (SIA), one of its key business zones
with significant potential for growth. Work began in February on the park,
which is intended to attract investment from companies in the science,
technology, digital, creative and IT sectors. By completion in April 2008,
it is expected to create 1,000 new jobs for the area, as well as 150
temporary construction jobs.
In Cornwall in the South West, the Brunel Business Park in St Austell has
been officially opened by the Duke of York, the UK’s Special
Representative for International Trade and Investment. The $9.5 million
development, which is aimed at businesses in the ICT and creative
industries sectors, sets new standards for sustainable office
construction, featuring a range of innovations such as an earth energy
heating system, rainwater harvesting and natural ventilation.
Training
initiatives to add to national skills base
Trade and Industry Secretary Alistair Darling launched a new $28 million
National Skills Academy for Manufacturing in Birmingham in January, one of
a series of academies being rolled out across a range of industry sectors.
It will deliver training courses designed for industry by industry, and is
set to train 40,000 students a year by 2012. The project is backed by some
of the biggest names in UK manufacturing, including Rolls-Royce,
Caterpillar, Ford, GKN, BAe Systems, Airbus, Corus, VT Group and Nissan.
The national centre in Birmingham will join up with lead colleges in each
region of England to deliver courses under the National Skills Academy
brand. The first three regions are the West Midlands, East Midlands and
the North East, with the other regions set to come on-stream by the end of
the year, and Wales and Scotland to be included in early 2008.
Another academy, the National Skills Academy for Food and Drink
Manufacturing, is due to open in April and will provide vocational
education and training for up to 28,000 workers in the food and drink
industry during its first four years. The academy is a joint venture
between Improve (the Sector Skills Council for the industry) and the
Learning and Skills Council (LSC). Training will be delivered via a
network of Academy Training Centres in different regions of the UK, each
with its own speciality. The first five include Grimsby Institute of
Further and Higher Education in Yorkshire and Humber, which will
specialise in fish processing, and Reaseheath College in Nantwich,
Cheshire, which will focus on dairy products. Others will concentrate on
FMCG, meat and poultry and food hygiene, and more institutions will be
added to the list as the initiative develops.
Other recently launched training initiatives include Yorkshire Forward’s
‘Manufacturing MASters’ scheme, which is being run by the Manufacturing
Advisory Service. This $2 million programme is open to all employees of
companies in the Yorkshire and Humber region, and is built around a number
of key manufacturing disciplines. On Merseyside in Northwest England,
funding of $3.5 million has been secured to set up a Merseyside Maritime
Institute, which will provide training for over 500 workers in the
maritime sector by 2008. The Institute will focus on developing
software-based simulators that will replicate port operations and
international trade and logistics scenarios.
London asserts its leading role on
the world stage
Think London, the UK capital’s inward investment agency, has launched an
initiative to help Chinese businesses establish themselves in London.
Touchdown London, set up in collaboration with serviced office provider
Avanta, is a bespoke start-up service that offers subsidised office space
and support services, including a Chinese-speaking manager who will help
new investors to access the full range of Think London services. The
agency has already helped 41 Chinese companies, ranging from large
conglomerates to small specialist firms, to set up in London, creating
1,000 jobs in the process. The UK is by far the largest recipient of
Chinese FDI into Europe, with London itself accounting for 15 per cent of
the European total and nearly one-third of all Chinese investment into the
UK.
According to a report by consultancy firm McKinsey, commissioned by New
York city mayor Michael Bloomberg, the Big Apple is in danger of being
overtaken by London as the world’s pre-eminent financial services centre.
If current trends continue, said the report, New York could lose up to 7
per cent of its market share, equivalent to 60,000 jobs, over the next
five years. The survey pointed out that in 2006 a total of 367 companies
joined the London Stock Exchange, compared with 270 on the New York Stock
Exchange and Nasdaq combined.
London’s financial workforce grew by 4.3 per cent to 318,000 between 2002
and 2005, while New York’s declined by 0.7 per cent to 328,400. London’s
share of the top 50 hedge funds grew from just three in 2002 to 12 in 2006
while New York’s declined from 28 to 18, and over 300 languages are spoken
daily in London compared with over 200 in New York. A report in the
Guardian newspaper noted that almost half those surveyed by McKinsey
thought that New York had lost some of its appeal as a financial centre
over the past three years, while the reverse applied to London.
As if to rub salt into the wound, this autumn London will host the first
ever regular season game of the US’s National Football League (NFL) to be
played outside the Americas. The city beat off competition from Germany,
Canada and Mexico to win the bid, which was led by tourist agency Visit
London and the Mayor’s office. An estimated 10,000 NFL fans are expected
to travel from the US to watch the game, which is also expected to attract
North American TV audiences of 30-40 million. “This is an amazing
opportunity to showcase London and is one of a number of events that will
ensure we are truly on the world stage in the lead-up to the London 2012
Olympic Games,” said James Bidwell, chief executive of Think London.
Subsequent NFL games may also be played in London in 2009 and 2011.
Regional news
Vizioncore, a US-based software provider that provides tools for
‘virtualised’ IT environments, has established a headquarters for its EMEA
operations in London. The company, headquartered in Buffalo Grove,
Illinois, is looking to grow rapidly in the UK over the coming year, with
plans that include expanding an existing network of around 50 UK
resellers. “Organisations in the UK have been some of the earliest and
most innovative adopters of virtualisation. The market is obviously a
significant one,” said Colin Wright, Vizioncore’s regional director for
northern Europe.
Telekom Atlas has become the first Turkish company to float on a London
stock exchange, having joined the Plus market. The telecoms firm offers a
range of services to Turkish companies, including broadband, web hosting
and internet telephony. Its chief executive, Eytan Levi, said that not
only would the float give the company access to investors but it would
help to raise its profile in Turkey, as none of its competitors is listed
internationally.
Swedish IT consultancy firm Teleca has set up a new branch of its
auSystems subsidiary in Winchester, Hampshire in South East England.
auSystems specialises in the convergence of fixed and mobile networks, as
well as in IT, telecoms and media platforms, via its next-generation
networks (NGNs). The new operation will help to drive the company’s growth
in the UK and beyond, with 40-50 consultants based in the new office. “The
UK market has a growth potential for auSystems’ NGNs that could not have
been utilised if we hadn’t been present in the UK,” said Eivind Madsen,
the company’s UK managing director.
Sea Space, the development company for the towns of Hastings and Bexhill
in Kent in South East England, has launched a new website to encourage
inward investment. The site’s business section gives details of support
for companies, properties to let, business events and contracts available
from Sea Space. Visit the site at: www.seaspace.org.uk.
Philips, the Dutch electronics group, is to increase production of plastic
babies’ feeding bottles at its plant in Glemsford, Suffolk in Eastern
England, in a vote of confidence in the UK manufacturing sector. The move
will safeguard 700 jobs as the plant ramps up production to make an
estimated 30 million bottles this year, 10 per cent more than in 2006.
Philips bought the plant for $920 million last year, as part of a strategy
to build a portfolio of ‘lifestyle’ products, and since then it has
invested significantly. Its high level of automation means that, overall,
its production costs compare favourably with low-wage economies such as
China. The plant also makes a range of other products that are sold
worldwide under the brand name Avent. It is expected to contribute sales
of $208 million to Philips’ mother and childcare division this year, with
80 per cent of its output being exported.
The East Midlands Development Agency (emda) has launched a new initiative
aimed at building business ties with companies in China. The East Midlands
China Business Bureau (EMCBB) is an expansion of the former Leicester
Shire-China Trade Bureau, which built on existing links between
Leicestershire and the Chinese province of Sichuan and which since 2004
assisted more than 300 businesses in the region to strengthen their links
with the People’s Republic. The EMCBB will provide a source of China
expertise and knowledge, supporting Chinese investors, attracting Chinese
visitors to the East Midlands and encouraging academic links and student
exchanges.
Car manufacturing is set to resume at MG Rover’s Longbridge plant at
Birmingham in the West Midlands, according to Chinese owner Nanjing
Automobile, which acquired the UK firm’s assets following its collapse in
2005. Nanjing Auto said its mission was to “revive, maintain and develop”
the MG brand at the plant, and it intends to re-employ many former Rover
workers. The company will begin manufacturing the MG TF roadster at the
plant, and has said previously that Longbridge will eventually have a
production capacity of 15,000 cars a year. Meanwhile Land Rover, the Ford
subsidiary based nearby at Solihull, has launched a substantially revised
version of its long-running Defender model and in March will launch a
light commercial vehicle derivative of its Discovery 3 4x4 model.
Swedish bank Handelsbanken is expanding its operations in Yorkshire and
Humber, after its Leeds branch reported a 40 per cent increase a year in
business. It already has a branch in Hull and has recently opened another
in Sheffield. Leeds branch manager Andy Copsey said: “With the ongoing
development of the Yorkshire economy we will be looking to open new
branches to satisfy specific local needs rather than centralising
regionally.” Handelsbanken has been operating in the UK for the past 30
years and has a total of 23 branches around the country.
RDA One NorthEast has extended the regional coverage of its Selective
Finance for Investment (SFI) programme, which means that any small or
medium-sized enterprise (SME) in the region will be eligible to apply for
grant support, regardless of location. Previously, only the 63 per cent of
SMEs located within an Assisted Area were eligible for such funding.
During 2006, One NorthEast offered some $54 million in SFI funding to 121
companies, helping to create over 5,000 jobs and safeguarding a further
2,029. This support was expected to generate around $670 million in
capital investment. Among the biggest beneficiaries in 2006 were global
shipping giant Maersk, the Tanfield Group and Norwegian-owned oil and gas
contractor Seadrill Engineering.
A consortium of 15 universities in the North of England has been formed to
work closely with the creative and cultural industries and to make the
most of the opportunities offered by the BBC’s proposed move to the Media
City development at Salford Quays. Led by the University of Salford,
Northern Edge will harness academic expertise in areas such as journalism,
visual arts and music. One of only two such organisations to be funded in
the north, the initiative is supported by Northern Way, a collaboration
between the three northern Regional Development Agencies (RDAs). Between
them, partner universities have around 13,600 students and 400 staff in
the creative and cultural disciplines. The Northern Edge initiative will
provide a focal point for the development of professional training,
research and knowledge transfer in these industries.
Media City, Salford
Quays
Electroimpact Inc, a US aerospace
tooling company that is a key supplier to Airbus UK, has expanded its
operation in Wales, creating more than 20 highly-skilled jobs. The company
designs, manufactures and installs the huge electromagnetic automatic wing
riveting machines, wing panel assembly systems and assembly jigs used on
the Airbus A380. The riveting machines, which can weigh up to 170 tonnes
apiece, are built in the US and then shipped to the UK for reassembly at
Airbus’s sites in Broughton, North Wales and Filton near Bristol. The
company opened a centre in Hawarden in Wales in 2002 to provide 24/7
engineering support and maintenance. Increasing demand for its services
has led it to move to larger premises on the Pentre Industrial Estate in
Deeside, where it now occupies 10,500 sq ft of workspace and office
accommodation.
Japanese automotive component manufacturer Takao Europe Manufacturing Ltd
(TEM) is investing $6.4 million to establish a new operation in South
Wales that will create 100 jobs. TEM has bought the former Yajima factory
on Rassau Industrial Estate in Ebbw Vale and has already started
recruiting. The company, which is based in Gloucester in South West
England, produces components for Honda and Toyota. It looked at a number
of potential sites in Europe and the UK and chose Wales on account of the
skilled local workforce and the level of support and advice it received
from the Welsh Assembly government, which is providing a Regional
Selective Assistance (RSA) grant to support the investment.
Sports clothing firm Howies, based in Cardigan in West Wales, has been
acquired by US footwear and apparel giant Timberland. Howies was set up in
the mid-1990s by a husband-and-wife team and has since become a favourite
label with mountain bikers and skateboarders. It is known for its ethical
stance on environmental issues and is one of the UK’s strongest ‘cool’
brands. Since 2005 the firm has received two rounds of equity funding
totalling $1.3 million from investment agency Finance Wales, allowing it
to expand and invest in new technology. It currently employs around 20
people.
Citigroup is to create a further 185 jobs at its technology centre of
excellence in Belfast, Northern Ireland. The latest expansion involves an
investment of $42 million and will bring Citigroup’s workforce in Belfast
to 560, following an investment of $130 million in 2004 that created 375
jobs. The global financial services firm has also officially opened its
new premises at White Star House on the Northern Ireland Science Park.
Invest Northern Ireland has supported the move with financial assistance
of $7.2 million.
Teleperformance, on of the world’s leading providers of intelligent
contact centre and customer relationship management (CRM) solutions, is to
invest $11 million in a new contact centre in Newry, Northern Ireland.
Invest NI has contributed $4.5 million in assistance to the project, which
involves a centre of 23,000 sq ft that will create 450 jobs by 2010.
Teleperformance already has a 700-seat contact centre in Bangor, Co Down,
and the new development will almost double the company’s capacity. The
French company first set up operations in Northern Ireland ten years ago,
and employs over 2,000 staff across its whole UK network.
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