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Inward investment projects
surge by 14 per cent
Inward investment projects into the UK rose by 14 per cent in 2003/04,
confirming the UK’s position as the top investment location in Europe.
Figures published in the annual review of UK Trade & Investment, the
government investment agency, show that the UK attracted 811 investment
and expansion projects from overseas companies in the course of the year,
up from 709 in the previous year. Investments came from 40 different
countries, and in all created more than 25,000 jobs.
The manufacturing sector performed particularly strongly: although it
represents just under 20 per cent of the UK economy, it accounted for more
than 30 per cent of inward investment projects and 40 per cent of the jobs
created. Other sectors that saw a significant number of investments
included IT, software and electronics with 217 projects and
biotechnology/pharmaceuticals with 58. Management, automotive, food and
drink, engineering and finance all also scored strongly.
By country, the biggest investor by far remains the US, which was the
origin of 314 of the total projects during the year. It was followed by
France (54), Japan (52), Canada (51) and Germany (49), with Ireland,
Norway, India, Sweden and China also standing out for their contributions.
Of the total, 339 projects were new ones, 285 were expansions and 187 were
mergers and acquisitions (including joint ventures). The figures are
supported by data published in May by consultants Ernst and Young, which
showed that the UK remains the top investment location in Europe and has
increased its market share, winning 23 per cent of all investment into
Europe in 2003, compared with 19 per cent in 2002.
Andrew Hotchkiss, managing director of Eli Lilly UK, the UK subsidiary of
US pharmaceuticals giant Eli Lilly, was a keynote speaker at an all-day
conference staged to mark the launch of the report. The company opened its
first office in the UK in 1934 and now has 2,500 staff at a number of
sites around the UK, which serves as its European hub. It exports 90 per
cent of its production and is one of the UK’s top exporters. According to
Mr Hotchkiss, the UK is attractive to overseas investors because it has
the lowest barriers and most openness of any OECD country. Its other
attractions include an open, ethical and stable political system; a
pro-business climate; a strong base of quality scientists; a government
interested in partnership; and a huge commitment to innovation.
Trade and Industry Secretary Patricia Hewitt said of the report: “It is no
coincidence that inward investment is up and the UK is getting a bigger
share of investment into Europe while we are enjoying our longest unbroken
period of economic growth for over 200 years. Our competitive advantage
comes from the economic stability built by the government, the skill of
our workers and our strong IT and telecoms infrastructure.”
Regions reap the benefit of
overseas investment
The benefits of the continued high levels of overseas investment are clearly
felt at the regional level throughout the UK. In Yorkshire and Humber, for
example, more than 2,100 jobs were either created or safeguarded during the past
year by some 20 overseas investors, according to regional development agency
(RDA) Yorkshire Forward. Success stories include Kostal UK of Germany, which
invested more than $5.4 million to expand its manufacturing plant at Rotherham,
where it will make electronic seat switches for car manufacturer Volkswagen.
This investment created 40 new jobs and safeguarded a further 30. Other
significant investments were made by Belgian company VPK Packaging, which has
begun work on a new $18 million facility near Selby, and New York-based ASDI, a
bioscience company that has created 60 skilled jobs in Huddersfield.
In the East Midlands, Toyota created 1,000 new jobs through an expansion at its
Burnaston plant in Derbyshire, while US telecoms firm Vartec created 230 new
positions at its facility in Northampton. Some 44 per cent of foreign-funded
projects in the region came from North America, and these created 40 per cent of
the new jobs. Inward investors have helped to create prosperity in the region,
with the average annual salary for new jobs created by foreign-owned firms
rising to $43,320, an increase of 20 per cent on the previous year. Many of the
new jobs were in high-value industries such as telecommunications, engineering
and pharmaceuticals.
Wales saw more new jobs created by overseas companies than any other region of
the UK. A total of 4,064 new jobs were created in the principality in the course
of the year by 67 separate projects, compared with 60 in the previous year.
Wales’ share of the total of new jobs created in the UK rose to 16 per cent
compared with 11.9 per cent in the previous year, moving it up from third place
to first. Projects ranged from a $40 million investment by California-based
semiconductor manufacturer International Rectifier to create its most advanced
European facility at Newport, to a $5.4 million investment by Rachel’s Organic
Dairy to treble its production of organic yoghurt at Aberystwyth.
Economy growing at
fastest rate in three years
The first quarter of 2004 saw the UK economy expand at its fastest annual rate
for three and a half years, according to the Office for National Statistics.
Revised economic data put its annual growth rate at 3.4 per cent, significantly
higher than the previous estimate of 3 per cent and the fastest since the third
quarter of 2000. Household spending growth was weaker than previously thought,
but manufacturing output was revised upwards by 2.5 per cent. Both the Treasury
and the Bank of England expect the economy as a whole to expand by 3 to 3.5 per
cent this year.
Business investment was much stronger in the first quarter than previously
forecast, said the ONS, which revised its estimate of investment growth from 0.3
per cent to 1.9 per cent. This meant the annual rate of growth was not 4.4 per
cent as estimated, but in fact 7.2 per cent, the fastest rate since the first
quarter of 2001. Productivity growth also accelerated, from 2.1 per cent in the
final quarter of 2003 to 2.5 per cent in the first quarter of 2004, the highest
rise since Q3 2000. Analysts predicted that the rate would reach 3 per cent
during the coming year.
Manufacturing output rose strongly again in May, by 0.5 per cent, following a
0.8 per cent increase in April. This took the annual growth rate to 2 per cent,
above expectations and suggesting that the recovery in the sector is now firmly
entrenched. The latest manufacturing index from the Chartered Institute of
Purchase and Supply fell slightly, from 55.7 in May to 54.8, but was still
comfortably above the 50 marker that separates expansion from contraction. The
index has now shown expansion in the sector for 12 consecutive months.
Business confidence meanwhile has reached its highest point in eight years, with
output and employment prospects looking good for many firms, according to a
twice-yearly survey by the Confederation of British Industry (CBI) and property
advisers GVA Grimley. Some 51 per cent of employers responding to the survey
said they were more optimistic about their prospects than six months ago,
compared with just 10 per cent who were less positive. The balance of 42 per
cent was a big improvement on the 2 per cent recorded six months earlier.
The survey found that employment flattened out over the period, but that a
balance of 17 per cent of firms intended to speed up recruitment over the
remainder of 2004. Demand for commercial property was muted, with take-up driven
by retailers. A separate survey by AXA Insurance found that just over half of UK
workers were confident about the prospects for their industry, though this
confidence was more marked in the professional services sector than it was in
manufacturing.
Another survey, by employment agency Reed, shows that recruitment plans amongst
banks, insurers and IT companies are at their most ambitious for two years. Of
almost 1,500 companies surveyed, 68 per cent of those in the IT sector and 49
per cent in financial services were planning to hire new staff to expand their
businesses. Across all sectors, 40 per cent of companies plan to recruit for
growth over the next six months. Redundancies are at their lowest level for two
years, with only 6 per cent of companies planning to reduce their headcount. The
figures come against a background of strong employment and rising earnings. The
unemployment count in the three months to May was 850,900, the lowest since
1975. Average earnings, excluding bonuses, rose 4.2 per cent in the second
quarter, compared with 4.1 per cent in the first.
A report from Barclays Bank suggests that the British economy will continue to
grow at an annual rate of between 1.25 per cent and 2.5 per cent for the next 20
years, and that by the early 2020s it will overtake Germany to become the
biggest economy in Europe. This would the first time since 1959 that Britain
held the top spot. In 2000 the UK overtook France to become the second largest
European economy and the fourth largest in the world.
Ten-year plan will
boost spending on science
The government has unveiled a new ten-year investment framework for science and
innovation, which aims to increase spending on R&D from the current 1.86 per
cent of GDP to 2.5 per cent by 2014. Core science spending will rise by 5.8 per
cent annually for the next three years, growing from $7.6 billion in 2004/05 to
$9.7 billion in 2007/08. The framework document envisages an increase in public
spending at a similar rate over the following seven years, matched by the
private sector. Assuming the economy grows at an annual rate of 2.5 per cent,
this would represent an increase in total R&D spending of 75 per cent.
The spending review also channels extra money to higher education funding
councils, which support the research infrastructure of universities. Spending on
university research and innovation by the Department for Education and Skills
will have an annual real growth rate of 6 per cent, reaching $3 billion in
2007/08. The budget of the Office of Science and Technology will increase
annually by 5.7 per cent to reach $5.9 billion, while a charity research support
scheme is to be introduced to develop partnerships between research charities
and universities. The government is committed to developing the UK’s scientific
base and recently introduced a number of tax incentives for companies engaged in
R&D.
British scientists are the most productive in the world, turning out the second
largest number of scientific papers after the US and outperforming international
competitors in terms of the relation of research output to financial input. This
analysis comes from the government’s chief scientist Sir David King, based on
data from US company Thomson ISI, which indexes the world’s research journals
and measures the impact of each paper according to the number of times it is
cited by other researchers.
Between 1997 and 2001, researchers working in the UK produced 9.4 per cent of
the world’s scientific publications and 12.8 per cent of the most cited papers.
This compares with figures of 8.8 per cent and 10.4 per cent for Germany and 9.3
per cent and 6.9 per cent for Japan. The US accounts for 35 per cent of all
scientific papers and 63 per cent of high-impact papers. When output is related
to funding, the UK takes the lead in productivity because its science funding
falls short of its major competitors. Paradoxically, cutbacks in funding in the
1980-1995 period contributed to the UK’s current strong performance, as they
encouraged researchers to be more resourceful.
New initiatives
underline strength of research sector
Meanwhile, scientific, engineering and research initiatives around the country
are helping to strengthen the UK’s reputation for innovation. In North West
England, for example, a new Organic Materials Innovation Centre (OMIC) opened at
the University of Manchester in June. The $5.4 million facility provides
world-class research and training facilities to support the region’s burgeoning
plastics and polymer industry. Also in the North West, at Speke in Liverpool,
construction is under way on the National Biomanufacturing Centre, a
government-funded initiative that will develop and manufacture new
biopharmaceutical medicines for clinical trials. The centre, operated by Eden
Biodesign and due to open early in 2006, will provide facilities and support to
new and existing biotech companies.
In Eastern England, a $7.2 million engineering centre of excellence is to be
built on three acres of land close to the headquarters of the automotive company
Group Lotus, at Hethel in Norfolk. The centre will offer workshops and office
units as start-up accommodation for small businesses in the engineering sector.
The centre will be actively supported by Lotus. In Cambridge, a new laboratory
and office wing has opened at the Strangeways Research Laboratory. The Genetic
Epidemiology Centre will house a number of research teams looking into genetic
and environmental causes of common diseases such as cardiovascular disease,
diabetes and cancer. The building can house up to 150 researchers.
Novacta Biosystems Ltd, a leader in microbial pathway engineering and biological
catalysts, has moved from Norwich to new accommodation in Hatfield,
Hertfordshire, The company will occupy 3,200 sq ft of laboratory space and new
offices at the Innovation Centre on the University of Hertfordshire campus. Also
in Hertfordshire, the UK’s first two human embryonic stem cell lines, developed
by researchers in London and Newcastle, have been deposited in the newly opened
UK Stem Cell Bank, the first of its kind in the world. The Bank is responsible
for storing, characterising and supplying ethically approved, quality controlled
stem cell lines for research and ultimately for treatment.
A second round of pioneering centres designed to help businesses exploit
research carried out by universities has been launched in Yorkshire and Humber.
RDA Yorkshire Forward last year established a network of Centres of Industrial
Collaboration (CICs), which have since grossed over $12.6 million in research
income, worked with more than 70 businesses and created or safeguarded 38 jobs.
Now it has launched five new CICs at universities around the region that will
seek commercial uses for research in a variety of applications, particularly in
key cluster industries. They are the Environmental Technology CIC at the
University of Hull; the Engineering Design CIC, run jointly by the universities
of Hull and Leeds; the Institute of Pharmaceutical Innovation CIC at the
University of Bradford; the Design Futures CIC at Sheffield Hallam University;
and the Food Chain CIC at the universities of Leeds and York.
In Wales, a Digital Technium has formally opened for business on the campus of
Swansea University. Forming part of a network of Technium business innovation
centres across Wales, the facility is home to the most advanced virtual reality
unit in the UK. Representing a $4.7 million investment by Agilent, a
Hewlett-Packard spin-off, the VR facility enables researchers to design and test
products in 3D. This allows a huge range of products – from cars to heart valves
– to be built and tested in a fraction of the time required for conventional
prototypes. Digital Technium has already attracted six high-tech companies; the
latest is US power semiconductor specialist Vishay Siliconix, which is to open a
design centre there. The Pennsylvania-based company will design a complete range
of complex integrated circuits for the global market, with up to 10 researchers
at Swansea working closely with its development teams in the US.
In Scotland, the Alba Centre at Livingston has chalked up a world first, with
the first four students graduating from its unique Engineering Doctorate (EngD)
course in electronics system design. The four-year course requires students to
undertake an industry-focused research programme in system on chip and system
level integration technologies. It is jointly administered by the universities
of Glasgow, Edinburgh, Strathclyde and Heriot Watt.
Restructuring announced for railway network
In a far-reaching review
of the UK’s railway network, Transport Secretary Alistair Darling has announced
the closure of the Strategic Rail Authority, with the government itself to take
over responsibility for setting strategy, via the Department for Transport. The
White Paper The Future of Rail also sets out other key changes to the
industry. Network Rail will be given clear responsibility for operating the
network, leading industry planning and setting timetables. Track and train
companies will work more closely together, and in time the number of franchises
will be reduced and aligned more closely with Network Rail’s regional structure.
There will be greater decision-making powers for local governments in Scotland,
Wales and London. The regulatory system will be streamlined and the Office of
Rail Regulation will cover performance, safety and cost. There will be a better
deal for freight, enabling the industry and its customers to invest longer-term.
Freight operators will be given greater certainty about their rights on the
national network, and key routes will be identified on which freight operators
will be able to pay for more assured rights of access.
Associated British Ports has won planning approval to build a new five-berth
enclosed outer harbour at the port of Immingham, in Yorkshire and Humber. The
berths will accommodate a new generation of super-ferries that are increasingly
being used on European routes, reinforcing Immingham’s importance as a national
and international port. The scheme will involve the dredging and reclamation of
an area of 55 acres.
Two new research reports from market research company Analytiqa offer a detailed
insight into the UK’s logistics industry. Who’s Who in UK Logistics is a
statistical analysis of more than 40 leading contract logistics service
providers, outlining their operational capabilities and proving sector
breakdowns and company profiles. Growth Strategies and Trends in UK Logistics
is a survey of more than 50 logistics providers carried out during April and
May, and provides an analysis of this rapidly growing sector. More information
from: www.analytiqa.com.
Regeneration agencies deliver another successful year
Government regeneration
agency English Partnerships has reported a year of rapid growth, with an 80 per
cent increase in its investment programme, to take it to $738 million. During
the year, the agency’s achievements included delivering 945 acres of brownfield
land reclaimed and/or serviced; 2.5 million sq ft of floorspace for employment
use; $691 million of private sector leveraged in to support the development
programme; and nearly 5,000 houses built or started.
High-profile projects included securing planning permission for the $7.2 billion
regeneration of the Greenwich Peninsula and Millennium Dome in south-east London
and the launch of the London Wide Initiative to provide affordable homes for key
workers in the capital. Other major milestones included the establishment of
Barking Riverside, a joint venture with construction company Bellway that will
provide up to 11,000 new homes in the Thames Gateway regeneration area; the
creation of the Register of Surplus Public Sector Land, covering 768
government-owned sites amounting to 6,700 acres; and the acquisition of the
former RAF Staff College in Bracknell, South East England, which will be used
for new and affordable housing.
Regional development agencies have also marked up significant successes. The
Northwest RDA (NWDA), for instance, reports wide-ranging progress in delivering
its designated strategic regional sites over the past 12 months. Among the
highlights, construction has started on a new business village at Central Park,
Manchester, that will be occupied by Fujitsu, as has work on an extension to the
HQ of MBNA Bank Europe Ltd at Chester Business Park that will support the
creation of a further 2,700 jobs. Approvals were gained for site assembly to
begin at Kingsway Business Park in Rochdale, while work is already under way at
Liverpool University Edge, a high-tech incubator attached to Liverpool Science
Park, and on Galemire Court, a development at Westlakes science park in
Whitehaven that will provide opportunities for companies in the nuclear
industry.
In the North East, work has begun on the Northumberland Business Park, south of
Cramlington, a development that could create up to 1,200 jobs. The project is a
collaboration between Northumberland County Council and RDA One NorthEast. A
similar tie-up between Advantage West Midlands and Shropshire County Council is
behind the $7.2 million Shrewsbury Food Enterprise Park at Battlefield
Enterprise Park. The 26-acre site will provide units for sale or lease for food
and drink firms of all sizes, and is intended to create a base for the region’s
food and drink sector. At nearby Hereford, six new factory units have been
opened at Twyford Court on the Rotherwas Industrial Estate. The $2.3 million
scheme is one of the first projects to be completed under the region’s Rural
Regeneration Zone. The units range in size from 2,200 sq ft to 6,000 sq ft and
come complete with car parking and utilities.
New horizons for
aerospace industry
A new $54 million
initiative has been launched that aims to disseminate expertise and knowledge
about lighter, stronger composites for a variety of industries, particularly the
aerospace and automotive sectors. The National Composites Network will have
various regional centres, each of which will specialise in a particular
technology. The first part of the network will be at the GKN Centre on the Isle
of Wight, which will focus on automated manufacture and will help to secure 700
high-quality manufacturing jobs. Other centres are planned in the South West,
Wales and Yorkshire. Composite technologies are vital to the aerospace industry
because they lead to lighter structures, allowing planes to carry heavier loads
and use less fuel. They are also of benefit to the automotive, marine and
construction industries.
The announcement was made by Trade and Industry Secretary Patricia Hewitt at the
Farnborough International Air Show, the annual flagship event for the aerospace
industry. The event, held in the South East in July, brings together key
industry players, research organisations and development agencies. Among those
exhibiting this year was the North West Aerospace Alliance (NWAA), which
represents a key regional cluster involving almost 1,000 companies and employing
60,000 people. Other regions with a strong representation at the show were the
South East and South West.
Also at Farnborough was the Midlands Aerospace Alliance (MAA), which is
supporting a new regional pilot study for a concept that may eventually be
promoted throughout the UK. The Midlands Engineering Industries Redeployment
Group (MEIRG) is an initiative that aims to nurture a well trained, skilled and
motivated pool of engineering talent in the Midlands region. The group is open
to all engineering employers, including MAA members, and already counts the
Alstom Group, Bombardier Transportation, AEA Technology, Rolls-Royce and Smiths
Aerospace among its members. Among the services the organisation offers is a
confidential web-based recruitment service. More information at:
www.meirg.org.uk.
A new high-technology park that will specialise in the Unmanned Aerial Vehicle (UAV)
industry has been officially opened at Aberporth in Wales. The 50-acre
ParcAberporth will be the first centre in the UK specifically geared for the
development, integration, test and evaluation of UAV and other autonomous
systems. A total of $38 million has been invested in the facility, which has the
potential to create up to 1,000 new jobs.
Car sales head for fourth
year of record growth
New car sales reached a
new record in the first six months of 2004, with 1,376,657 vehicles registered,
representing a rise of 2.2 per cent over the same period of 2003. This puts the
car market on course for a new record for a fourth successive year, despite
rising interest rates, and far beyond anything expected by the motor industry at
the start of the decade. Figures from the Society of Motor Manufacturers and
Traders, however, show that the surge of buying is now being driven more by
fleet and other business users than by private buyers. First-half sales to big
fleet users were up 3.1 per cent and sales to other business users by 13 per
cent, while private sales fell by just under 1 per cent for the half, and by 5.8
per cent in June compared with June 2003.
Total car production in the three months to May rose by 2.5 per cent, seasonally
adjusted, compared with the previous three months. Domestic production increased
by 5.3 per cent while production destined for the export market fell by 0.7 per
cent. Compared with the same period a year ago, total car production rose by 0.7
per cent, with domestic production falling by 4.8 per cent and export production
rising by 3.1 per cent. Total production of commercial vehicles for the
three-month period to May fell by 5.7 per cent compared with the previous three
months, but rose by 16.2 per cent compared with the same period a year ago.
Regions set to benefit as
BBC decentralises production
In the creative sector,
the BBC is to move a significant portion of its production and commissioning out
of London and into the regions. Manchester and the North West are particularly
well placed to exploit the opportunities this opens up for independent
production and post-production companies. The region is already a national
leader in film, television and the media, employing over 7,000 people in the
film and TV industry and producing 11 per cent of all new network programmes,
double that of any other region. The NWDA has already confirmed a new tranche of
funding for North West Vision’s Regional Attraction Fund, an investment fund for
high-growth TV companies based in the region and independent companies seeking
to move production there.
The Korea Culture & Content Agency (KOCCA) has established a European
headquarters in London to help Korean companies set up business in the capital.
KOCCA is the national government office for the Korean Ministry of Culture and
Tourism, which fosters the growth of creative companies in areas such as
animation, broadcasting, music, cartoons and mobile content. The London HQ is
the organisation’s fourth overseas branch after Japan, China and the US.
“London’s position as the creative hub of Europe was one of the most influential
factors for KOCCA when deciding where to locate,” said Ms Hyun-Jeon Oh, the
organisation’s regional manager.
Wales welcomes wave of
industrial investors
Japanese electronics giant Sharp – a global leader in solar energy production –
has opened its first European solar module manufacturing facility at its plant
in Wrexham, North Wales. The new facility will assemble mono- and
poly-crystalline modules for commercial and residential installations. At
present the facility employs 63 people, but it is expected that the workforce
will grow as the use of photovoltaics expands. A second production line will be
installed at the plant in October, targeting an annual production capacity of
40MW.
In South Wales, SEDA UK, a subsidiary of the Italian SEDA International
Packaging Group, has announced plans to build a new manufacturing facility at
Hawtin Park, near Blackwood, creating 190 jobs. SEDA UK is a leading
manufacturer of packaging for the food industry, while its Italian parent
company employs 1,800 people in six countries, supplying customers such as
Nestlé, Unilever, Coca-Cola and MacDonalds.
ArvinMeritor, based in Troy, Michigan and a supplier of integrated systems,
modules and components to the vehicle industry, is to upgrade its commercial
vehicle facility at nearby Cwmbran. The company will expand its 750,000 sq ft
plant, where it currently produces heavy vehicle braking systems, to accommodate
additional air-brake assembly capacity. In Llantrisant, Therma-Tru Doors, a
manufacturer of fibre-glass entry door systems based in Ohio, has acquired
Sentinel Doors Ltd. Sentinel offers a complete range of entry door systems,
especially in the fast-growing social housing sector, and is a UK leader in
composite door design and innovation.
Also in South Wales, Irvin-GQ Ltd, a world leader in the supply of parachute
safety and survival equipment to the international military and aerospace
markets, has opened a new factory at Llangeinor, near Bridgend. The company, a
subsidiary of the US-owned Airborne Systems Group, will employ 450 people at the
100,000 sq ft facility, producing metal fittings for parachute harness buckles,
aircraft pallets and other heavy cargo equipment and carrying out R&D
operations. Irvin-GQ, which boasts 70 years’ experience in parachute design, was
formed three years ago through the merger of GQ Parachutes and Irvin Aerospace.
Around the Regions
Epson Telford Ltd, a
subsidiary of the Japanese giant Epson Seiko based in Telford in the West
Midlands, plans to introduce a total of six new fully automated lines this year
devoted to the manufacture and packing of ink cartridges. This represents an
investment of $12.6 million, and has been prompted by continued growth in the
company’s core business together with expansion of its other logistics and
service activities. The growth has also seen a steady increase in the number of
people employed by Epson, with the workforce now standing at just over 1,100 and
further expansion planned for this year.
Liberty Information Technology (LIT), the software development arm of Liberty
Mutual Group (LMG), based in Belfast, Northern Ireland, is to invest $5.3
million to develop new services for its parent company and in training and
development. LMG, based in Boston, is a leading global multi-line group of
insurance companies. LIT has already secured new software development work from
Liberty International Underwriters, which has offices around the world, marking
the first time it has provided software to business units outside the US. The
investment will create 26 new jobs.
Development agency Wirral Direct has launched a new website for the Wirral
International Business Park at Bromborough, North West England. The site – at
www.wibp.co.uk – features a number of sections, including business area details,
availability of premises and a directory of companies. The business park is one
of the region’s leading strategic investment areas, and is home to numerous
local, national and international companies.
Australian airline Qantas is to establish a base in London for its international
flight attendants. The base, which will be operated by a wholly-owned UK
subsidiary, will accommodate 400 staff and is expected to be operational by June
2005. Qantas currently operates 21 one-stop services to London a week, via
Singapore and Bangkok. Next year this will increase to 27 services a week,
including three new ones via Hong Kong.
Curtiss-Wright Flow Control (UK) Ltd, a subsidiary of the Curtiss-Wright
Corporation of the US, has purchased a 43,000 sq ft unit at Gore Cross
Industrial Park at Bridport in Dorset, South West England. The site will not
only replace the company’s existing premises in the town, but will become a new
European headquarters, with operations at other sites around the UK being
transferred to Bridport over the next five years. The building, due for
completion by the end of the year, will conform to the latest standards in
sustainable development.
Also in the South West, the New Swindon Company has announced a number of
regeneration schemes that look set to transform the former railway town over the
coming years. Along with leisure, retail and residential developments, plans
include a new flagship office area (The Exchange), regeneration of the town’s
railway corridor providing critical access to the town centre (Swindon Central)
and a new business development area north of the railway (The Campus).
International media services provider arvato AG, based in Gütersloh, Germany and
a subsidiary of global media group Bertelsmann AG, has chosen Liverpool in North
West England as the location for a new multi-million dollar printing plant.
arvato plans to invest around $207 million in the rotogravure printing facility,
which will be the most advanced of its kind in Europe when completed and will
create more than 400 jobs. The 500,000 sq ft plant will be located at the
Estuary Business Park in Speke, close to Liverpool John Lennon Airport.
Construction will begin in early 2005, with the plant expected to be fully
operational by early 2008. The rotogravure process is used to produce
high-quality colour publications such as magazines, printed mailings and
catalogues.
Bell Microproducts, a San Jose,
California-based provider of high-tech products, solutions and services, has
acquired OpenPSL of Manchester, North West England for $36 million. Bell
Microproducts produces semiconductors, computer platforms, peripherals and
storage products for the industrial and commercial markets, and claims to be one
of the largest storage-based value-added distributors in the world. OpenPSL will
bring to its portfolio enterprise, storage and security products, together with
related professional services provided to VARs, systems integrators and software
companies in the UK and Ireland.
A new training facility for the contact centre industry has opened in Sunderland
in North East England. The North East Contact Centre CoVE (Centre of Vocational
Excellence) is based at Doxford Park, a hub for the region’s fast-growing
contact centre industry. The centre will offer industry-led training and a
portfolio of professional qualifications tailored to its needs locally.
Airline simulator training company Alteon, a subsidiary of the Boeing
Corporation, has moved its operations to Crawley in West Sussex, South East
England, from nearby Burgess Hill. The company’s two giant simulators have been
housed in a purpose-built 52,000 sq ft facility, next to the Virgin Atlantic
building. Alteon’s relocation puts it at the heart of the West Sussex training
simulation hub, which benefits from its proximity to Gatwick Airport. In
addition to its Sussex facility, Alteon also has its headquarters in Luton,
Eastern England, with a second operation unit in Manchester in the North West.
The National Coalfields Programme has received a major boost with the decision
by DIY retail giant B&Q to build a huge automated warehouse at the former Manton
Colliery site in Worksop, in the East Midlands. The programme is an initiative
by regeneration agency English Partnerships to attract investment to former
colliery areas of the UK. B&Q will build a $90 million distribution centre in
the North Nottinghamshire town in a two-phase development, with an initial
building of approximately 750,000 sq ft and a future expansion increasing its
size to 1 million sq ft. The facility, one of the biggest distribution centres
ever to be built in the UK, will create up to 1,000 jobs. It is scheduled to
open in late 2005.
ProSkelia of France and the Straken Group, based in Galashiels, Scotland, have
agreed to merge to form a fully integrated speciality pharmaceuticals company.
Each partner will hold 50 per cent equity in the new company, which is yet to be
named. Its HQ will be in Scotland, while the principal R&D operation will be at
ProSkelia’s existing facility in Paris. ProSkelia specialises in skeletal
biology and steroid chemistry, while the Straken Group has a therapeutic focus
on women’s health and older men.
Oxford Industries, an apparel company based in Atlanta, Georgia, has acquired
London-based Ben Sherman for approximately $146 million. Ben Sherman, founded in
1963, started as a young men’s shirt brand but has since evolved into a global
youth brand for both men and women, producing sportswear, accessories and
footwear.
B2B digital media corporation Loudeye, based in Seattle, Washington, has
acquired On Demand Distribution (OD2), Europe’s leading digital music service
provider, which is based in Bristol, South West England. Together, the two
companies serve more than 200 customers in 15 countries, including leading
retailers, portals, telecoms companies, commercial radio stations and ISPs. The
acquisition makes Loudeye the largest B2B digital media provider in the world,
with the biggest licensed digital music catalogue in the industry.
Energy Conversion Systems Holdings, of Delaware, has acquired the net operating
assets of the auto and consumer business of the Morgan Crucible Company for $60
million. Morgan Crucible, based in Windsor, South East England, is divided into
a number of global business units. The auto and consumer business, which
operates on three continents and employs 1,800 people, manufactures a wide range
of carbon brushes, commutators and energy conversion systems for consumer,
automotive and industrial applications.
LAS International Ltd, a US-based environmental systems manufacturing company,
has bought its European distributor, LAS International (Europe), based in King’s
Lynn, Norfolk in Eastern England, as part of an expansion programme. LAS Europe
handles sales, engineering and distribution of environmental systems throughout
the EMEA region. The company specialises in wastewater treatment systems, and
has recently installed a stormwater management system at Heathrow Airport.
London’s other major international airport, Gatwick, has been using LAS
equipment for water treatment since 1992.
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