June 2008

NEWS

Foreign-invested firms honoured in Queen’s Awards
  The annual winners of The Queen’s Awards for Enterprise were announced on 21 April 2008, HM The Queen’s birthday. These are the UK’s most prestigious accolades for business-related achievement, and a total of 139 business awards and 11 individual awards were conferred this year. The Queen’s Awards honour outstanding UK companies and are made in three separate categories: International Trade, Innovation, and Sustainable Development. This was also the fourth year of The Queen’s Award for Enterprise Promotion (QAEP), an award for individuals who have played an outstanding role in promoting entrepreneurial activity.

As in previous years, several foreign-invested companies figured in the Awards – prominently in the International Trade category, less so in Innovation and Sustainable Development. In International Trade, US-owned firms formed the biggest group. Among them were Cummins Ltd’s Darlington Engine Plant in County Durham, which manufactures diesel engines and components for automotive, construction, power generation, military and marine applications. Another winner from the North East was TRW Occupant Safety Systems in Peterlee, part the of US-owned TRW Group, which produces automotive safety systems including seatbelts, airbags, electronic control units and remote crash sensors.

Motorola Point to Point Fixed Wireless Solutions Group of Ashburton, Devon won an International Trade Award for its broadband solutions for high-speed voice and data networks. So did two other US-owned companies, CVI Technical Optics Limited, based in Onchan, Isle of Man, for its laser optical components, and Rapiscan Systems Limited of Redhill, Surrey, which makes security X-ray and metal detection screening products.

Land Rover Holdings of Gaydon, Warwickshire – now owned by Tata of India – earned an International Trade Award for its 4x4 vehicles, parts and accessories. Similarly honoured were Japanese-owned Canyon Europe of Newtownabbey in Northern Ireland for its trigger sprayers and pump dispensers, and Korean-owned Humax Electronics Co. Ltd, based in south west London, for its digital set-top boxes and LCD televisions. Evolution Securities China Limited of London EC3 took an International Trade Award for its investment banking and securities business, while the sole European winner in this sector was DUCO Ltd, part of Technip of France. Based in Newcastle upon Tyne, the company designs and manufactures sub-sea umbilical systems for the offshore oil and gas industry.

In the Innovation category the Japanese-owned KeyMed (Medical & Industrial Equipment) Ltd of Southend-on-Sea, Essex won an Award for its i-SPEED high-speed video camera. So too did DuPont Teijin Films UK Ltd, based in Middlesbrough, which is owned 50:50 by US and Japanese investors and manufactures Melinex polyester films, designed for use in portable banner stands at exhibitions and conferences. Land Rover picked up an Award in this category too, for its Terrain Response vehicle traction system.

Novation Music (division of Focusrite Audio Engineering), Innovation winner; Llanllyr Source, International Trade winner.

Bank of England rules out interest rate cuts ‘for two years’
The Bank of England announced at the end of April that it believed the correction in the credit markets had gone too far and that the worst of the global crisis could be over. According to the Bank’s twice-yearly Financial Stability Report, it believed that credit markets “overstate the losses that will ultimately be felt by the financial system and the economy as a whole”.

However, just two weeks later the Bank sounded rather less optimistic, warning that no further cuts in UK interest rates should be expected for at least two years. It also warned that inflation would rise well above its previous forecasts and would remain at levels higher than the government’s 2 per cent target until early 2010. The Bank’s governor, Mervyn King, said that the consequence of rising prices would be “a squeeze on real take-home pay, which will slow consumer spending and output growth, perhaps sharply”. He added that it was “quite possible we may get the odd quarter or two of negative growth”, but said that the Bank was not forecasting a recession.

Presenting its latest UK quarterly forecasts, the Bank said that inflation was likely to rise above 3 per cent over the next few months and would remain more than a percentage point above the 2 per cent target. According to its projections, inflation will not return to 2 per cent until early 2010, suggesting that there was no room for rate cuts then even though the UK economy would slow sharply. The blame for higher inflation, according to King, lay with surging food and energy prices, along with higher import prices resulting from falls in sterling. The Bank expects another 15 per cent rise in domestic gas and electricity prices in the coming months.

King urged the public to “be patient”, insisting that a period of very slow growth was needed to help get inflation back on target. Some economists believed that cuts in interest rates were still possible because the Bank had been over-optimistic on growth. Adding to the rather gloomy economic picture, however, were new falls in house prices. According to Nationwide, the UK’s second largest mortgage lender, house prices declined by 2.5 per cent in May, the biggest monthly fall since 1991, and ended 4.4 per cent lower than in May 2007.


Financial services sector bucks global gloom with strong performance
One area of the UK economy that is faring well despite the global downturn is the financial services sector, according to a new report from International Financial Services London (IFSL). The latest edition of its International Financial Markets in the UK report revealed that London was the leading location for initial public offerings in 2007, amounting to 18 per cent of the total global share. Among the report’s findings, the UK’s financial services trade surplus increased by 29% in 2007 to a record $66.4 billion. Financial services increased their share of UK GDP to 10.1%, 0.5 per cent up from 9.4% in the previous year. ‘City-type’ employment rose by 11,000 from 2006, to a total of 353,000 people.

Trading on the London Stock Exchange (LSE) in UK and foreign-listed companies increased by 13 per cent from 2006 to 2007, to total $15,408 billion, and the LSE claimed a leading 46% share of foreign equity trading. Trading on the Liffe futures exchange totalled 949 million contracts in 2007, up 30 per cent on 2006. The UK had a 25 per cent share of net issues in the international bond market in 2007, up from 15% in 2006. In April 2007, the City of London accounted for 43 per cent of global OTC derivatives trading and 34 per cent of all global foreign exchange trading. Daily foreign exchange trading increased from $1,506 billion in April 2004 to $2,944 billion in October 2007. The UK also accounted for 35% of European securitisation issues in 2007, and was the source of a quarter of European investment banking revenue. UK banking sector assets increased by 11 per cent over the course of the year to reach $13,928 billion.

“Within the UK, the importance of London is core to its international position but other cities such as Edinburgh, Glasgow, Leeds, Manchester, Birmingham and Bristol are important financial centres,” the report added.


LSE listings continue to draw overseas investors
One new arrival on the London Stock Exchange is Russian retail chain OJSC Magnit, which has brought the number of Commonwealth of Independent States (CIS) firms on UK markets to 100. The company, which operates more than 2,000 stores, listed with a $490 million flotation. Companies from the CIS now represent 22 sectors on the LSE, with the top five sectors being mining, oil and gas, real estate, industrial metals and banking. Russia is recognised by UK Trade & Investment (UKTI) as a high-growth market, with trade between the two countries increasing significantly in recent years. Sergey Galitskiy, CEO of OJSC Magnit, noted the prestige of an LSE listing and said that the flotation would allow the company to expand and access foreign markets.

Latest figures show that the number of companies floating on the UK’s second stock market, the Alternative Investment Market (AIM), this year is substantially lower than last year. Between January 1 and the end of April, 41 companies made IPOs, raising a total of $749 million, according to the LSE. In the same period of 2007, 76 companies raised $3.2 billion. However, there is still a steady flow of new companies listing on AIM, with some raising substantial sums. Among them are Chariot Oil & Gas, which is prospecting for oil off the coast of Namibia, which raised $81 million, and TGE Marine, a German engineering group that designs and builds gas carriers and offshore units, which raised $42.6 million for a market capitalisation of $328 million.

TGE is the 18th company to join AIM from Germany, where the LSE has been running a marketing campaign, and brings the number of European companies on AIM to 131, up from 106 at the end of April 2007. Other new debutants include Share, parent company of the Share Centre; Mortice, a security management company based in India; and KSK Emerging India Energy Fund, which plans to raise up to $500 million through a dual listing on AIM and the Channel Islands Stock Exchange. OPG Power Ventures, which develops gas- and coal-fired power plants in India, plans to raise up to $100 million, targeting a market capitalisation of $300 million.

Also listing on AIM in May was Yangtze China Investment Limited, a provider of expansion capital to small and medium-sized China-based enterprises, with a focus on the consumer sector. The group will invest in unlisted companies that are expected to benefit from the growing Chinese middle class and the increase in disposable incomes, concentrating on companies in consumer sectors such as technology, media and advertising, entertainment, distribution and retail, and health goods and services.

Wilfred Wong, chairman of Yangtze China Investment, said: “Our planned admission to AIM is a significant step in Yangtze’s development. Our strong track record, generating an average gross internal rate of return in excess of 75 per cent from 2001 to 2007, places the company in an excellent position to generate substantial returns for our shareholders. The landscape for the private equity investing in China remains buoyant, and with our significant experience in the Chinese market, we are confident of exposing the company to the excellent growth prospects that are currently available.”


London taps into growing Islamic finance market
April saw the launch of a new Islamic bank in London, underlining the City’s status as the leading Western financial centre for this fast-growing sector. Gatehouse Bank was the fifth Islamic bank to be awarded a licence in the UK, which is the only European Union country to have licensed Islamic banks. The UK government has realised the potential of the market and also sees the development of Sharia-compliant finance as a way to connect with the two million Muslims living in the UK. It has also stolen a march on New York as a hub for Islamic finance, partly because of its time zone and partly because the sub-sector is unpopular in the US following the September 2001 attacks.

David Testa, chief executive at Gatehouse Bank, said: “Islamic finance is a healthy and growing industry, stimulated primarily from the Gulf, but also from growing interest in south-east Asia, including new centres such as Indonesia. Investors in the Middle East are increasingly looking to diversify out of their region and they see London as a key marketplace to help them in this.”

Islamic banking assets in the UK are estimated at $500 billion, an increase of about 20 per cent since the credit squeeze began last summer, according to ratings agency Moody. The five Islamic banks in Britain are retail bank Islamic Bank of Britain (IBB), the European Islamic Investment Bank, the Bank of London and Middle East, the European Finance House (set up in January this year) and now Gatehouse.

IBB, the UK’s only retail Islamic bank, is growing strongly in spite of the credit squeeze. Based in Birmingham and with high street branches in London, Manchester and the Midlands, it increased its customer base by 38 per cent year-on-year to 42,000 by the end of 2007, with deposits growing 61 per cent to a value of $270 million. At the same time, its total assets rose 51 per cent to $31.6 million, from $20 million a year earlier. IBB was launched in September 2004 to meet the growing demand for religiously compliant banking products. Islamic finance does not allow the payment of interest, which is banned in the Koran.

Sultan Choudhury, commercial director at IBB, said: “Clearly, we are very small compared with the conventional banks, but we are attracting business. Customer numbers have gone up this year as well and our balance sheet continues to grow. I think Islamic banks in general have been less affected by the credit crisis because of the quality of assets they tend to have on their books.”

The UK’s first Islamic insurance company has also received approval from the Financial Services Authority (FSA) and will become the UK’s first independent provider of takaful, an Islamic form of mutual insurance. Principle Insurance, formerly called British Islamic Insurance Holdings, will offer shariah-compliant home and motor insurance based on the wakala model, in which policy-holders are protected by the company’s shareholders and the firm makes a profit through taking an agreed management fee. Ibdulaziz Hamad Aljomaih, chairman of the new company, said: “I believe Principle will go some way in altering the perception of Islamic finance in the UK, by showing that progressive, sensible and profitable businesses can be established in accordance with Islamic law.” Mortgages were the first Islamic financial products to be made available in the UK, and have grown in popularity.


British business schools enhance their global standing
UK business schools have strengthened their positions in the global rankings, and now account for half of the top 30 business schools in Europe, according to the Financial Times Global MBA 2008 rankings. Globally, there are 12 British schools in the top 50 offering full-time MBA courses. London Business School is the best performer, having climbed from fifth position in the past two years to second, behind Wharton at the University of Pennsylvania. Another top performer is the Judge School at the University of Cambridge, which climbed from 35th place in the world in 2006 to 15th in 2007 and 10th in 2008.

Also figuring in the 2008 global rankings are the Saïd Business School at the University of Oxford, steady in 19th place, the Manchester Business School, which is joined in 22nd position by Lancaster University Management School, up from 30th two years ago. Warwick Business School is in 29th place, up from 52nd in 2006, while two UK institutions tie for 30th position: Cranfield School of Management, which has risen from 46th two years ago, and University of Strathclyde Business School, a new entrant to the global top 100 for 2008. Also making their mark are the Tanaka School at Imperial College London (35th), the Cass School at City University (41st), Edinburgh University Management School (44th) and Leeds University Business School (49th).

In Europe, UK MBA schools sweep the board, with London Business School retaining its top spot from last year and Judge at Cambridge climbing the rankings from seventh to fourth, behind Insead and the IE Business School. All the UK schools that feature in the global top 50 make into the top 20 in Europe while, additionally, the Bradford School of Management/TiasNimbas Business School, the University of Bath School of Management and Nottingham University Business School are ranked at 21st, 22nd and 23rd respectively. Institutions are judged on a range of criteria, including the salaries and career progression of graduates.

Meanwhile, the University of Cambridge’s Judge Business School has appointed Professor Jaideep Prabhu to its recently announced Jawaharlal Nehru Professorship of Indian Business and Enterprise. Funded by a $6.4 million grant from the Government of India, the chair will be based at the Cambridge Centre for Indian Business. Prof Prabhu, a professor of marketing, is director of research and professor of marketing at Imperial College London’s Tanaka Business School. The Cambridge Centre aims to help forge closer links between India and other economies and to promote a deeper understanding of India’s interests in the world economy.

Another ranking of academic institutions, the Guardian’s University Guide for 2009, ranks British universities on a range of criteria, including quality of teaching, expenditure per student and alumni’s career prospects. The latest rankings put the University of Oxford in first place, with Cambridge second and the London School of Economics third. The top ten is completed, in order, by Warwick, St Andrews, Imperial College, University College London, the School of Oriental and African Studies, Edinburgh and Loughborough. These are followed by York, Lancaster, Bath, Exeter, Leicester, Durham, Dundee, Aston, Nottingham and Glasgow.

According to the Guardian league table, the University of Teesside in North East England is the top place in the UK to study mechanical engineering, scoring 10 out of 10 for value added to students undertaking the degree and gaining high marks for satisfaction with teaching and assessment. The university improved on its second place in the discipline last year to take the top spot. Dr Paul Shelton, project tutor and assistant dean at the University’s School of Science & Technology, said: “Our course meets the specific needs of the local engineering supply chain companies, many of whom support the process industries in the Tees Valley and the wider North East region. But we also attract a number of sponsored overseas students from areas of the world such as the Gulf States. Much of the project work within the course is industry-based or aimed at solving real industry problems, and this is a major attraction.”


UK technology firms lead European field for venture capital
Research has identified London as the leading European city for access to venture capital – with Cambridge also in the top 10. Analysts Library House reported that London has the most venture-backed companies and the highest amount of venture capital committed to these enterprises, ahead of its closest rival, Paris. The research also noted that, while most venture capital in a city is invested in sector-specific ‘clusters’, the size of London’s resources and population means that it can support several of these clusters at once.

Cambridge, in Eastern England, came ninth in terms of the number of venture-backed companies and sixth in terms of the value of this investment, according to the research. Library House commented: “Cambridge is well known for particular strengths in biotech, owing in large part to the world-class scientific research spinning out of the university.” Last year, a new $70 million venture capital firm, IQ Capital Partners, was founded in Cambridge to invest in cutting-edge technology at the early stages of development.

A Cambridge physicist and entrepreneur has become the first recipient of a major international award for his pioneering work on semiconductors and luminescence and his role in bringing academic research closer to industry. Sir Richard Friend, Cavendish Professor of Physics at the University, was presented with the first Pierre-Gilles de Gennes Prize for Science and Industry by French chemical company Rhodia. The prize recognises Sir Richard’s research on conjugated polymers, as well as his efforts to realise their commercial potential.

In 1988 he and Jeremy Burroughes established that such polymers have semiconducting properties, and two years later, observed electroluminescence in conjugated polymer LEDs, two fundamental discoveries that started the field of semiconducting polymer electronics. Sir Richard’s group at Cambridge have followed this up with numerous achievements, including the development of directly-printed polymer transistor circuits and efficient diodes for converting light into electricity made of polymer blends. Sir Richard has been at the forefront of commercial transfer, co-founding Cambridge Display Technology, which led to the widespread adoption of polymer LED technology, and Plastic Logic, which has commercialised polymer transistors. A third spin-out company was founded last year to work on polymer solar cell technology.

Another survey shows that the UK is extending its lead in Europe for venture capital investments in technology companies. The country has consistently topped the European rankings for this type of investment, with an average contribution of 30 per cent of all European deals since 2000. Last year, UK technology companies attracted 29 per cent of all investments, but in the first quarter of 2008 they looked to be stretching their lead, with a 37 per cent share. Some 233 deals were concluded across Europe in the first quarter, with activity particularly strong in the first six weeks of the year. Although the total was not as high as the peak recorded in Q1 2007 (the best quarter since Q3 2001), it was comparable with levels recorded in the previous three quarters.

The UK’s rise was mainly at the expense of smaller European countries, with only Sweden increasing its percentage from 5 per cent in 2007 to 6 per cent this year. After the UK came Germany and France, with 18 per cent and 11 per cent respectively, on a par with 2007. For all of the top three countries, the internet was the sector showing the most activity in 2008. In the UK, internet-related investments accounted for 23 per cent of all deals, followed by biotechnology and healthcare and communications, both with 18 per cent.

The UK has also emerged top of a ranking of 22 national patent systems compiled by international law firm Taylor Wessing, scoring well on its streamlined procedures, specialist patent courts and well-respected judges. London has been criticised as one of the most expensive places in the world for patent litigation, but Taylor Wessing said that its survey showed that companies and entrepreneurs were more concerned about the consistency and reliability of judicial decisions than the rising costs of disputes. The US, also perceived as an expensive place to litigate, ranked second in the survey, with a reputation as a “patent-friendly” regime. China came last of the 22, just below the other members of the BRIC group, Brazil, Russia and India. Meanwhile, Europe is set to benefit from a new accord on patent translation that came into force in May. The London Agreement scraps the requirement that patent filings must be translated into 23 languages, reducing businesses’ costs by as much as 40 per cent in the 15 European countries that have adopted the accord.


New support for groundbreaking research in life sciences
The UK is a step closer to developing cutting-edge treatments for diseases after MPs backed the use of human-animal hybrid embryos in research. An amendment to the human fertilisation and embryology bill, which would have banned the creation of ‘human admixed embryos’ for medical research, was defeated in the House of Commons in May by a majority of 160. MPs also voted against a second amendment which would have outlawed the use of ‘true hybrids’ – animal eggs fertilised with human sperm, or vice versa.

It is hoped that the use of embryonic hybrids will increase the supply of material for stem cell research. It is anticipated that the use of such technologies will lead to breakthroughs in a wide range of conditions, especially in medical disorders such as motor neurone disease and Parkinson’s Disease. Prime Minister Gordon Brown said that the use of embryonic cells in medical research would help to develop treatments for millions of people worldwide. Professor Chris Shaw, from the Institute of Psychiatry in London, commented: “It will allow us to forge ahead on all fronts in our attempts to understand and develop therapies for a huge range of currently incurable diseases.”

A new $20 million life sciences institute is to be created in Dundee in Scotland. The Scottish Institute for Cell Signalling will be set up at Dundee University, under the direction of leading scientist Sir Phillip Cohen, and will look at how cells behave and communicate. Scientists hope that this area of research will lead to breakthroughs in the treatment of diseases such as cancer and diabetes. Sir Phillip said: “Cell signalling is one of the largest branches of the life sciences and an area of great importance to the pharmaceutical and biotechnology industries. Dundee is recognised as a world leader in this field and the new institute will not only reinforce its position but also enable it to develop new strengths in emerging areas of cell signalling that will furnish the major drug targets of the future.” Dundee University undertakes a range of medical research, with recent projects including the use of arsenic as a treatment for leukaemia and a $4.6 million study into the human immune system.

German biopharmaceutical company Paion is to acquire Cambridge-based CeNeS Pharmaceuticals plc. CeNeS identifies and develops drugs that are designed to improve patient outcomes in the therapeutic areas of pain, anaesthesia and neurology. The acquisition is intended to create a substantial international biopharmaceutical company with a pipeline of clinical drug candidates focused on innovative drugs for the treatment of thrombotic diseases and central nervous system-related interventions. Neil Clark, CEO of CeNeS, said: “We are pleased to have reached agreement with Paion and are excited by the potential of the enlarged group. The combination creates a diversified pipeline backed by a strong balance sheet and a proven management team. The enlarged group will be well placed to achieve significant clinical and commercial milestones over the next 24 months.”

The East of England Development Agency (EEDA) has awarded a $3.7 million grant to the Cranfield School of Management and Cambridge University’s Institute for Manufacturing and Judge Business School Centre for Entrepreneurial Learning to establish an academic presence at Colworth Science Park in Bedfordshire, Eastern England. A science and innovation hub is being developed at the park under a joint venture between Unilever and international property group Goodman. Academic staff will be able to work with a range of companies in a commercial setting with the full support of modern shared facilities, amenities and equipment. Colworth Science Park’s location, near the village of Sharnbrook, is at the heart of the Cambridge to Oxford ‘innovation arc’. It is already home to 17 businesses in a collaborative science community, comprising major companies such as Unilever, as well as a number of local start-up businesses.


Aerospace industry takes wing with Airbus investment programme
Pan-European aerospace consortium Airbus has put its confidence in the UK aerospace industry with a $206 million investment to fund cutting-edge R&D into technologies for the next generation of short-range commercial aircraft. The investment package will be used to develop elements of Next Generation Composite Wing (NGCW) technology, including advanced materials, electrical systems, systems integration and aerodynamics. The new wings will utilise the latest composite materials, which are lighter and more durable than metal, helping to reduce fuel consumption and hence operating costs and environmental impact. The programme will be led by Airbus UK in collaboration with the Department for Innovation, Universities and Skills (DIUS), industry partners and economic development agencies.

NGCW is one of the most significant joint aircraft research programmes to be launched in the UK for decades, and will transform wing design processes. It will enable the development of mature technologies that will lead to much lighter and more eco-efficient aircraft. According to the Technology Strategy Board, which is contributing $50 million, the programme will help maintain the UK’s position as a key innovator in the aerospace field. It will also provide a big boost for individual aerospace companies in different regions of the UK, including South West England, Wales and Northern Ireland.

The South West has a high concentration of aerospace companies, including Airbus, GE Aviation and Messier Dowty. Nick Buckland of the South West Regional Development Agency commented: “South West England is already home to much of the research and technology for the aerospace industry and [the] announcement sees a strengthening of this position. The region will provide a centre for the development and validation of designs for improved performance, lower manufacturing cost and lower noise emissions.” The South West RDA has invested $16 million in the NGCW public private partnership.

In North Wales, the NGCW programme will ensure that the Airbus wing manufacturing plant at Broughton, Flintshire, which employs nearly 7,000 people, will remain a world leader in wing design and manufacturing. The facility is Airbus’s Centre of Excellence for Wing Assembly and Equipping. Both the workforce and the facility have expanded dramatically in recent years with substantial investments in equipment and tools. The plant has already won the contract to produce composite wings for the new A350 aircraft, and also makes wings for the A380 superjumbo. In March, it said it would probably have to employ more people after winning a $40 billion contract to supply the US air force.

The Welsh Assembly Government is supporting the project with its largest ever R&D investment of $15 million, some 15 per cent of the total, to help Broughton transform its technology from aluminium alloy to weight-saving composites. First Minister Rhodri Morgan said, “Airbus’s North Wales operation is one of only two facilities in the world capable of the manufacture of wings for large civil aircraft. Not only does it make a huge contribution to the Welsh economy, but it also serves as a flagship for engineering and manufacturing excellence in Wales.”

Michael Ryan, Vice-President and General Manager, Bombardier Aerospace, Belfast, and Tracy Meharg, Managing Director, Innovation and Capability Development, Invest Northern Ireland, pictured with the all-composite horizontal stabiliser for the Global Express business jet at Bombardier’s advanced composites facility in Dunmurry.

Invest Northern Ireland is supporting Bombardier Aerospace in Belfast to invest almost $18 million in the initiative, providing $4.4 million in R&D funding through its START programme. Bombardier is focusing on specific techniques that will optimise and refine the composite wing design process and methods for ramping up production of aerostructures made from composites. Michael Ryan, vice president and general manager of Bombardier Aerospace, Belfast, said: “Bombardier’s Northern Ireland operation already incorporates a centre of excellence for composites manufacturing in Dunmurry and is engaged in other major nationwide research programmes such as the Environmentally Friendly Engine and Integrated Wing projects. Our involvement in NGCW will complement the work of these initiatives and help us to continue to set new standards in aircraft development.”

Elsewhere in the aerospace sector, Cranfield University in Bedfordshire has officially opened its new Accident Investigation Laboratory, which will train air accident investigators from around the globe. Students will get hands-on experience with a range of accident-damaged vehicles and fixed-wing aircraft, some of which are housed in the new facility. They will also have the opportunity to gain skills in evidence collection and witness interviewing and analysis, through simulated accidents on the university’s own airport. Since 1977 Cranfield University has trained civil and military aircraft accident investigators from around the world, and since 2004 it has also offered training for rail, marine and road accident investigators.

In another space project, the second test satellite in the European Union’s Galileo programme has been successfully launched carrying a cutting-edge payload that was developed in the UK. The Giove-B satellite blasted off from Kazakhstan on 27 April with a high-precision passive maser atomic clock on board. Developed by UK-based EADS Astrium, the groundbreaking device contains the most accurate clock ever taken into space. The satellite will test new technologies that will be used in the Galileo network, which aims to create the first civil global satellite navigation programme. To help develop the network, the UK has invested more than $223.2 million in the European Space Agency (ESA), and the first Galileo test satellite was built and operated by UK-based Surrey Satellite Technology. Science and Innovation Minister Ian Pearson said: “The roles played by UK companies have been critical, and demonstrate the engineering and skill base that has been developed in the UK. It is a clear demonstration that the UK remains at the core of space development both in the ESA and the EU.”

Coming back down to Earth, in the automotive sector, China’s Nanjing Automobile Corporation is to reopen the UK’s Longbridge car plant in Birmingham, West Midlands to manufacture a range of new vehicles and to conduct R&D activities. The factory, which was closed after the collapse of British car-maker MG Rover, will begin production of up to four new models, according to the Chinese company. It is expected that 500 limited-edition MGTF sports cars will be the first off the production line, with standard models of the MGTF and new versions then being manufactured. Nanjing, which purchased the MG Rover assets, also announced that a new R&D facility would be established to help design the new models. Pre-production at the factory has already seen hundreds of workers employed, and 57 car dealers have signed up to receive the plant’s products. In April, Nanjing president Chen Hong visited the plant to tell workers that plans were on track to start production of the sports car.

Another foreign car manufacturer, BMW of Germany, has reported “good growth” year-on-year for its Mini brand. The compact vehicle is manufactured in the UK at BMW’s Plant Oxford in South East England, with 600,000 units manufactured since 2001. Since the first quarter of 2007, the number of Minis shipped has risen by almost 25 per cent, from 46,978 to 58,054 units. The Mini Cooper is the most popular variation of the vehicle, representing 59.6 per cent of sales, with the Mini Cooper S contributing 26.3 per cent and the Mini One 14.1 per cent. Since November 2007, some 16,000 units of the new Mini Clubman have also been shipped. Dr Norbert Reithofer, chairman of BMW, said: “Mini has already presented two new models this year. The Mini John Cooper Works and Mini John Cooper Works Clubman will arrive at dealerships this summer.”

More MINIs produced in Oxford.
 

Swedish engineering firm Dormer Tools is to construct a major new facility at a UK technology park to support product development and expansion plans. The company will build a 20,000 sq ft base at the Advanced Manufacturing Park (AMP) in Rotherham, Yorkshire and Humber. The cutting-edge facility will undertake R&D for the firm and is expected to contribute to the dozens of new products that Dormer plans to unveil later this year. In addition to the site at the AMP, Dormer Tools has an office in Nottinghamshire, East Midlands and operates in more than 40 countries. The AMP aims to provide companies with a location to carry out innovative R&D work and is home to organisations such as Boeing and University of Sheffield partnership AMRC and Castings Technology International.


Northern Ireland investment conference highlights US ties
US President George W. Bush sent a video message of support to delegates at the US-NI Investment Conference held in Belfast, Northern Ireland from 7-9 May. The President said it was clear that Northern Ireland was open to foreign investment, and added: “The United States will continue to support the people of Northern Ireland as you take charge of your future, and we share with you the firm belief that even greater opportunities for cooperation lie ahead.”

European Union president Jose Manuel Barroso also sent an upbeat video message, saying: “Northern Ireland now has a great chance to build on its new political momentum, its well-educated workforce and its international ties. I am sure that foreign investors already established in Northern Ireland will soon be joined by more, and then Northern Ireland will take its place on the map as a region embedded in a broader network in a new Europe, which is the foundation stone for our future prosperity.”

This was the fifth investment conference aiming to encourage US firms to invest in the province since the IRA ceasefire in 1994. Around 120 executives from 80 companies attended the two-day event, together with senior politicians including Prime Minister Gordon Brown and his Irish counterpart Brian Cowen, Deputy First Ministers Ian Paisley and Martin McGuinness and New York City Mayor Michael Bloomberg.

Invest Northern Ireland was a prominent participant and announced a number of new investment successes. Local software company, Wombat Financial Services, for example, announced the creation of 75 new jobs, while US firm CyberSource is to establish an R&D centre in Belfast with $1.7 million of Invest NI funding. CyberSource, a world leader in the development of secure online electronic payment systems, expects the R&D hub to create up to 56 new jobs over the next three years.

Bill McKiernan, the company’s chairman and CEO, said: “On our visits to Northern Ireland, we were impressed by the scale of the growing technology and financial services sectors and realised that tapping into this knowledge base would add significant value to our global operations. We look forward to recruiting the brightest individuals from the pool of impressive engineering talent in Northern Ireland.”

The province’s Economy Minister Nigel Dodds joined another US-owned company, Northbrook Technology, to unveil its new corporate identity, in advance of its 10th anniversary this year. Now known as Allstate Northern Ireland, the company remains a subsidiary of Allstate Corporation, the largest publicly held personal lines insurer in North America. Since it was established in Belfast in 1998, Allstate Northern Ireland has provided high-quality software development services in support of its US parent’s global operations. Its sites in Belfast, Londonderry and Strabane, which employ almost 1,500 people, undertake a variety of critical testing, technical support and business process activities for Allstate.

In a separate development, Japanese-owned Fujitsu Services has announced a $17.6 million investment that will create 120 jobs in Londonderry and a further 30 in Belfast. This was the company’s third investment in the past 18 months, and brought its total employment locally to over 900. Fujitsu is one of the world’s largest independent providers of the Oracle eBusiness Suite services and has been experiencing rapid growth. With $4.4 million of support from Invest NI, it plans to establish an Applications Services Centre of Excellence, reinforcing its Northern Ireland operation as a key component of its European network. Mike Crow, head of application services (Northern Ireland), Fujitsu Services, said: “This investment reflects Fujitsu’s confidence in its Northern Ireland operations and in the region’s ability to deliver the skills and the work ethic that has made our experience here so positive.”

Before the conference took place, Invest Northern Ireland’s chairman, Stephen Kingon, announced the organisation’s provisional annual results for 2007/08, and observed: “The recent turmoil in global financial markets has not yet substantially impacted Invest Northern Ireland clients. … During 2007–08 we continued to deliver high private-sector investment commitments to strong projects and have met or exceeded substantially all of our operating plan targets.”

Invest NI chief executive Leslie Morrison added: “Our support levered a total of $1.38 billion of investment commitments by our clients, 54 per cent of which related to locally-owned businesses, ranging from new starts to long-established firms. Almost 1,500 of our offers, the vast majority, were for less than $20,000, and some 136 were for more than $200,000.

“Northern Ireland continues to be one of the top-performing regions in the UK in attracting foreign direct investment. We have had another very encouraging year and secured 20 new and 14 inward expansion projects. A number of these projects, such as Bank of Ireland Securities Services and Citi, will further progress the development of the financial services sector. New investments by software houses like Fujitsu and 3ParData have enhanced our reputation as a location of choice for accessing such skills.”


Coup for Wales as Pencoed attracts Sony high-tech investment
South Wales has been chosen as the global centre for manufacturing for the first generation of Sony high-definition professional camcorder systems to be sold worldwide. The Sony UK Technology Centre in Pencoed has also been chosen as the location for the company’s European service and repair centre for digital cameras and camcorders. Just two years ago the centre was chosen as the only venue outside Japan to manufacture the latest generation of high-definition broadcast and professional cameras and camera systems.

The new twin investment is expected to create over 40 high-skilled jobs and is seen as a considerable coup for the region. Ieuan Wyn Jones, Minister for the Economy, congratulated the Sony team on a remarkable business turnaround at Pencoed, achieved by adopting an innovative approach to regenerate the site. He said that the team had encouraged business diversity and had developed a highly successful and sustainable business model. This has already attracted 24 high-tech companies to Sony Technology Village, including companies graduating from the Technium business innovation network.

“It also clearly illustrates how the Sony operation in Wales has skilfully made the transition from high-volume and low-value manufacturing to low-volume, high-value goods,” he added. The new XDCam portable HD professional camcorder system, which uses Blu-Ray discs to record, has been described as a ‘breakthrough’ technology, and was secured by Pencoed against competition from other Sony sites worldwide.


Regional News
Satellier, an Illinois-based leader of global workshare solutions, has opened a London office to directly serve the UK market. According to the company’s CEO Michael Jansen, the move was a “natural”, as Satellier has worked with UK-based architects and engineering practices for the past three years. Jansen continued: “This is a unique market that requires a special approach. As a graduate of the Cambridge School of Architecture, I have been sensitive to the specific needs of this market since starting in the industry.” Satellier is also planning to open an office in Dubai to serve the Middle East market.

Bell Equipment of South Africa, a supplier of articulated dump trucks and related tools, plans to open two new depots in the UK, one in South East England and another in Wales. The company’s UK managing director, Neville Paynter, said: “We are serious about providing an excellent after-sales service. This planned expansion is further demonstration of our commitment to customers’ needs.” No formal development plans are yet in place, but a timescale of 12-18 months has been set for the scheme. Established in 1954, Bell Equipment now delivers products and services from locations around the world. Within the UK, services include its Fleetm@tic global positioning fleet management system.

Hong Kong-based power tools manufacturer RYOBI has constructed a new distribution centre in Didcot in South East England to deliver its products throughout the UK. The multi-million dollar project has seen an existing 167,000 sq ft facility at ProLogis Park in the Oxfordshire town overhauled to meet the firm’s requirements. The company, a subsidiary of the TTI Group, will distribute its RYOBI, AEG, Homelite and Milwaukee brands from the site. ProLogis, the company behind the speculative Didcot development, anticipates that the move will bring 150 new jobs to the region.

The Thames Valley ICT hub in South East England is proving attractive to many firms from the Southern hemisphere. Figures from the Thames Valley Economic Partnership show that more than 50 companies from Australia and New Zealand have established bases in the region. They include accountants, software developers and data security tool providers, such as Dtex, producer of systemskan. Mohan Koo of Dtex suggests that the current exchange rate with the dollar makes the US an unattractive location for expansion, while cultural differences prevent Australasian ICT firms from entering the Japanese market. Brian Manning of specialist software supplier CMS Hospitality observed: “You can reasonably assume big players like Microsoft have got a good result by choosing to be here.” He also noted the reassurance provided by the proximity to other Southern hemisphere ICT firms and the easy access to the London market. According to the Thames Valley Economic Partnership, in total more than 200 companies have opened offices in the region in the past four years. As well as Australia, they include businesses based in Canada, the US, France and India.

The University of Southampton has announced plans to develop a new research facility providing services to the engineering sector across the South East. Renewable energy will be a particular area of focus for the facility, likely to be named the National Centre for Advanced Tribology. Its work on tribology – the science of friction and lubrication – will also have potential applications for the healthcare sector. Materials used in micro-robots and during reconstructive surgery incorporate tribologic principles into their design, according to the university. Professor Robert Wood, director of the new centre, said: “We are aiming to compete at the highest level globally in terms of research and to lead the agenda for UK tribology research.” The university recently revealed that it is working on an artificial airway that can be grown in a test tube and which may be used to treat asthma and other breathing disorders.

A new scientific training facility, Kent Science Resource Centre (KSRC), has been opened in South East England to deliver degree-level training for students in the biosciences. James Speck, site director at Kent Science Park, where the new facility is located, said that companies on the park were likely to benefit directly from the skilled labour created by the initiative. “The KSRC is an important resource, not only for many of the 80 companies on-site but also for local schools, which have already shown a lot of interest in using the facility,” he commented. Meanwhile a new office building has opened at Kent Science Park, increasing the available floor space by 22,600 sq ft. “This is the first entirely new building to be constructed on the park in a decade, although many millions of pounds have been invested in renewing and updating existing buildings,” said Speck. The building can accommodate up to four new-technology firms.

German paper company Palm Paper has held a ground-breaking ceremony at the location in Eastern England where it will build Europe’s largest paper mill. The new mill, which will be built on the Saddlebow Industrial Estate in King’s Lynn, Norfolk, represents an investment of $800 million by the family-owned company. It will house one of the largest and most advanced paper machines in the world, with an annual output of 400,000 tonnes, and will create 150 new jobs directly, and a further 150 indirectly with suppliers and local businesses. The facility is scheduled to start up in late 2009. Palm Paper’s chief executive, Dr Wolfgang Palm, said: “We have been shipping newsprint into the UK from our German mills for 13 years and our customers have increasingly asked us to introduce production in this country. It is the first time our family business has made a major investment outside our home country.” Palm Paper Ltd is the largest family-owned paper company in Germany, employing 2,800 staff.

The East Midlands Development Agency (emda) reported that in 2007-08 it helped to attract 32 inward investment projects, creating or safeguarding 3,915 jobs, against annual targets of 34 projects and 2,500 jobs. It called this “a solid performance”, given the more difficult investment climate, particularly from the US. Since this reporting period, there have been 14 new investments, including one by Bio XPR, a Belgian bioinformatics company, which has established an R&D operation at BioCity in Nottingham.

Also in the East Midlands, aero engine maker Rolls-Royce is to benefit from the Ministry of Defence’s award of a $26 billion contract to the AirTanker consortium. Rolls-Royce will build the Trent 700 engines that will power a fleet of 14 Airbus A330-200 tanker aircraft. The value to the company over the lifetime of the project is estimated to be more than $1.4 billion. The engines will be assembled and tested at Derby.

In North Lincolnshire, Yorkshire and Humber, more than 300 new jobs will be created by a $120 million project to redevelop a former furniture factory in Scunthorpe as a canning factory. Polish-owned Can-Pack UK Ltd has chosen Scunthorpe for its first ever venture in Western Europe. Work is already under way to convert the premises on the Holyrood Drive site, and production is expected to start before the end of the year. The first phase of the project will involve a capital investment of $80 million and will create 180 jobs. The second phase, to be completed in 18 months to two years, will add a further 130 jobs. Also in Scunthorpe, work is under way on a new 31,000 sq ft business park close to the town centre. The Ferrum Court office development will include 19 units from 800 sq ft up to 8,220 sq ft, which will be available to buy from $200,000 apiece.

The Centre for Food Robotics and Automation (CenFRA) is to open a new facility in Doncaster, South Yorkshire to drive further improvements in the UK’s food and drink sector. Funded by Yorkshire Forward and other RDAs, the centre – Europe’s first such facility – will work with robotics experts from the University of Salford to improve the efficiency of food and drink production through increased automation. Originally developed from the Innovation Technology Centre in nearby Rotherham, CenFRA will bridge the gap between industry and academia, encouraging more investment in automation, conducting technology audits for companies and providing the sector with a dedicated research facility.

A US company which specialises in home control and entertainment systems is to open a new base in the UK. Utah-based Control4 has announced that it will establish a regional sales, distribution and support centre in York, Yorkshire and Humber. According to the company, the new UK base will further its progression into markets in Europe, the Middle East and Africa. Will West, CEO of Control4, said: “Having a regional presence in EMEA will allow us to work more closely with our dealers, distributors and manufacturers and enhance the integration efforts required to deliver the most affordable and easy-to-use smart home experience.”

Transport Secretary Ruth Kelly has announced plans to extend the Metrolink tram system in Greater Manchester, North West England. The Government has pledged $488 million towards the $764 million total cost of the scheme. By 2012, the system will be extended from the city centre to Oldham, Rochdale, and Chorlton, as new track and stops are created. Work will also include upgrades such as rejuvenating disused rail routes for the trams to run on, contributing to faster journey times and more frequent services. According to Kelly, the improvements will lead to the Metrolink system carrying an extra 10 million passengers a year. In addition, the Greater Manchester Passenger Transport Executive (GMPTE) is constructing a further extension to the Metrolink network, separately funded, to Droylsden in the east of the city.

The Welsh Assembly has simplified its business support schemes by creating a new ‘one-stop shop’ for companies. The Flexible Support for Business approach, which includes a new website (www.business-support-wales.gov.uk), will make it easier for Welsh firms to get the information, advice and support they need to help them grow and prosper. The initiative, to be rolled out through 2008/2009, will condense all the current Assembly support tools, such as the Business Eye website, into one easily available package. This will include increased access to information, advice and support through a single website and telephone helpline, along with up to 30 local support centres; dedicated relationship managers to support the growth of strategically important businesses; and the replacement of all current Assembly funding programmes with a Single Investment Fund providing financial and specialist support.

A Norwegian sub-sea technology firm has announced it will set up a global hub in Scotland. Bennex, which supplies products to the underwater oil and gas industry, will open a new 3,000 sq ft facility at a purpose-built unit at the Enterprise Park in Forres, Morayshire. Manufacture of the firm’s underwater camera will be shifted from an overseas location to the new site, while production of an acoustic deterrent system that protects fish farms from seal attacks will also begin. Chris Hyde, aquaculture technical sales manager at Bennex, commented: “The idea is that the facility will be our global hub for aquaculture products, with all manufacturing resources based there. [We will also] end up with dedicated engineering and R&D resources on-site.” The new unit, provided by Highlands and Islands Enterprise, is designed to be sustainable, using solar panels and a geothermal borehole system with underfloor heating. Bennex has been operating in the sub-sea industry for 32 years and also has a UK office in Aberdeen.

Work has begun on the first industrial phase of development at the Bridgewater Park, Banbridge in Northern Ireland, with completion set for spring 2009. Of the 123-acre site, 47 acres have been zoned for industrial use, with the remaining 76 acres zoned for mixed use including retail and tourism. A shopping facility is the first element of the mixed-use development to have been completed. Northern Ireland Economy Minister Nigel Dodds said: “This $80 million development will open up major investment and employment opportunities for the Down and Armagh areas. The promoters have indicated that almost 800 new jobs could be created through the development of the industrial phase of Bridgewater Park alone.”

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