invest north east england

Monday 19th July

Overseas investment created or safeguarded 6,673 jobs in the North East over the last year, it was announced today.

The inward investment figures were announced at the UK Trade & Investment Business Summit attended by over 100 of the UK’s leading investors.

Nationally, 94,346 jobs have been created or safeguarded as a result of direct foreign investment in UK, up by almost 16,000 on the previous year.

In the North East, almost 2,900 jobs were created and just under 3,800 safeguarded by 68 projects, such as Nissan’s March announcement that it is to build its new electric car in Sunderland from 2013.

One North East has played a key role in attracting or retaining these overseas businesses in the region and a further five UK-based firms in 2009/10. In total, it is anticipated that these investments will lever in capital expenditure of just over £723m by the investing companies – over £520m more than 2008/09.

Around 82% of all the inward investment that came into the North East in 2009/10 came through the Inward Investment team at One NorthEast. Using the calculation of budget spent against capital investment attracted, the agency’s Inward Investment and Aftercare team has achieved a figure of £387 investment in the region for every £1 spent. This takes in the announced Nissan investments that accounted for well over £400m of capital expenditure alone in the North East.

Chief Executive of UK Trade & Investment Sir Andrew Cahn said: “Today’s results are a real vote of confidence in the North East, but we must work harder to continue to attract inward investment in what is a very competitive global marketplace.
 
“Overall, inward investment fell by 10 per cent across Europe, but the UK remains the number one destination in Europe for FDI.

“UK Trade & Investment is committed to attracting high quality investment into the North East, which is so important for the UK’s economic recovery.”

One North East Head of Business Investment, Dr Simon Goon, said: “It has been an extremely successful year for the Inward Investment and Aftercare team with a succession of large-scale announcements from companies attracted to the North East.

“We have had notable successes in the fields of healthcare, life sciences and creative industries and by putting the renewable energy and the low carbon agenda at the heart of our economic development plans we have created a green energy hub, which has helped us attract companies like Clipper Windpower, see established regional firms like TAG invest heavily in offshore wind engineering and bring the Nissan Battery Plant and the Nissan LEAF to North East England.”

Combined with Nissan’s decision to also build a battery plant at Sunderland, production of the Nissan LEAF, which aims to be the world’s most affordable mass-produced zero-emission car, represents a £420 million investment in the UK by Nissan. Around 50,000 Leaf cars a year will be produced at the Wearside plant.

Andy Palmer, Senior Vice President at Nissan, said: “Thanks to the UK’s firm commitment to a low-carbon future in terms of infrastructure, customer incentives and educational programmes, Nissan Leaf will be built in Sunderland, making the UK the third country in the world to produce this revolutionary car.”

Other notable investment successes include:

• The arrival of Lotte UK. The subsidiary of Korean giants Lotte Group is creating 132 new jobs and safeguarding a further 43 after taking over the former Artenius plant at Wilton with the help of a £1.8m GBI from One North East.
• Global engineering and construction provider Aker Solutions is recruiting up to 100 new staff in the Tees Valley, to service its rapidly growing customer base - with the support of a £1.4m One North East GBI, Aker Solutions is going from strength to strength in new purpose built offices Stockton.
• Clipper Windpower Marine Limited is creating its offshore wind turbine blade manufacturing facility at the Shepherd Offshore Renewable Energy Park in Newcastle. The new factory, a 4,000m2 facility, will be completed by the end of the year and be the UK’s first offshore wind turbine manufacturing facility, employing a local workforce in excess of 500.