April 2005

News

Brown announces balanced Budget ahead of election
Chancellor Gordon Brown announced his latest Budget on 16 March – widely expected to be the last before a general election is called. It contained few surprises, and generally maintained business taxation at existing levels. Mr Brown pointed out that the UK was enjoying its longest unbroken expansion since quarterly national accounts data began, with GDP having grown for 50 consecutive quarters. Volatility in the economy is at historically low levels and is the lowest amongst the G7 countries. Domestic stability allows the government to plan more effectively over the long term and puts the UK in a strong position to respond to economic challenges over the coming decade. In 2004 GDP rose by 3.1 per cent, the fastest rate for four years.

Mr Brown’s forecast for economic growth was unchanged from his pre-Budget report late last year: between 3 per cent and 3.5 per cent this year, falling to 2.5 to 3 per cent in 2006. Public borrowing will amount to $64.6 billion this year, declining to $60.8 in 2006 and to $41.8 billion by 2010. Public debt is expected to be 34.4 per cent of national income this year, rising to 36.2 per cent next year and 37.1 per cent in 2010, but staying below the government’s target of 40 per cent. The budget is expected to show a deficit of $30.4 billion this year, but will gradually move to a surplus of $22.8 billion by 2009. Inflation has averaged 2.4 per cent for the past eight years, and inflation targets remain unchanged at 1.75 per cent for this year and 2 per cent for 2006 onwards. The government is meeting its ‘golden rule’ of balancing the budget over the current economic cycle (which will run roughly until the end of 2005), though with a surplus of $11.4 billion rather than the $15.2 billion forecast in the pre-Budget report.

Business investment is expected to continue growing at a healthy rate, though at a slightly slower pace than in 2004, as companies respond to rising demand. High levels of profitability are expected, which will support growing capital outlays. The forecast for business investment is an increase of 4.25 to 4.75 per cent in 2005, and 3.5 to 4.25 per cent in 2006. Both imports and exports are expected to grow over the medium term, though the trade balance will remain broadly flat.

In measures affecting business, Mr Brown froze rates of corporation tax, capital gains tax, climate change and aggregate levies, insurance premium tax, airline passenger tax and company car tax at existing levels. He moved to cut the burden of regulation, reducing the number of government inspection bodies from 35 to nine, and the number of public inspectorates from 11 to four. Inspections would move to a more risk-based system, with companies with a good record receiving fewer inspections, and tougher penalties for persistent offenders. There will also be consultation by the Revenue and Customs on the introduction of a single tax account for small companies, which would reduce the amount of time currently spent dealing with different agencies. New guidelines will be established on the introduction of European laws in the UK.

The Chancellor doubled the threshold for stamp duty on residential property from $114,000 to $228,000, but announced an end to stamp duty exemption for commercial properties in disadvantaged areas. Local councils will be given more responsibility to promote business growth, with a fund of $570 million over the next three years being divided among 30 authorities in poor areas to spend on enterprise measures such as business incubation centres, business mentoring and financial support for new SMEs. This will replace previous initiatives such as the Phoenix Fund.

A number of measures were aimed at ending tax avoidance by multinationals. Regulation will be tightened up on companies attempting to take advantage of differential tax rates, in areas such as capital gains tax, stamp duty and VAT. There will also be a crackdown on schemes that use financial products, double taxation relief and international arbitrage, a move that is expected to raise $817 million from 2006-07. For oil companies, tax payments dates for North Sea oil revenues will be brought into line with corporation tax, meaning that next year’s payments will have to be made earlier.

In the area of science and technology, tax payments by companies spun out of universities will be deferred until the venture is deemed to be successful. There will also be clarification of the rules under which companies are able to claim tax credits for R&D expenditure. Government departments and public sector bodies will be required to direct at least 2.5 per cent of their external R&D spending to small, technology-intensive companies to help stimulate the sector. A national network in stem cell research will be created.

Across business, Mr Brown announced a number of new schemes to help boost training and skills development for employees, including a training academy to be run by the Trades Union Congress with $8.6 million of government money. The length of paid maternity leave will be increased to one year. Business leaders broadly welcomed the Budget. Sir Digby Jones, director-general of the Confederation of British Industry, said: “This is a measured Budget which has been crafted to ensure that economic stability is maintained. The Chancellor has avoided the temptation of pre-election risk-taking, targeting help only where it is needed most."

Thirty-seven regions exceeded 125 per cent of the average, of which seven were in the UK, six each in Germany and Italy, four each in Belgium and Finland, but only one in countries such as France, Sweden, Ireland and Spain. The only region among the new member states that joined the EU last May was Praha in the Czech Republic, at 153 per cent. The poorest region was Lubelskie in Poland, which could manage only 32 per cent of the EU average, while the lowest ranked region of the older member states was Dytiki Ellad in Greece, at 58 per cent.

According to Eurostat figures, the UK has significantly increased its economic performance in relation to one of its traditional European rivals, Germany. Since reunification in the early 1990s, Germany has slid steadily down the European performance league. By 2011, it is estimated that it will have been overtaken by Spain, formerly one of Europe’s poorest countries, in terms of per capita income. In terms of purchasing power, the UK was eight percentage points behind Germany in 1995, but is now nine points ahead. Germany has had the lowest growth rate in the EU for almost ten years and its unemployment rate currently stands at around 5.2 million.


London seeks to strengthen ties with Indian investors
The capital’s inward investment agency, Think London, has launched a new report highlighting the contribution made to the city’s economic and cultural life by its Indian community. The report, Indian Communities in London, points out that 6 per cent of the city’s population originates from the Indian sub-continent, and that the city attracts half of all Indian investment to Europe. There are 10,000 Indian-owned businesses in London, employing 49,000 people and generating a combined turnover of $14.4 billion, or 5 per cent of the city’s economy. There are more Indian companies listed on the London Stock Exchange than on New York and NASDAQ combined; big names include State Bank of India, Gail, Reliance Energy and Raymond. In all, there are 140 Indian multinationals in London, almost two-thirds of them in the software sector, but with many also active in business and financial services.

Think London has helped more than 200 companies from the Asia-Pacific region set up to date, and its chief executive Michael Charlton recently visited Delhi and Mumbai to share with Indian businesses and government leaders his city’s expertise in attracting FDI. India’s accelerating trend towards globalisation makes it the only developing country among the world’s top ten for both outward investment and for attracting FDI (in which it ranks fourth). Mr Charlton commented: “The synergies between the vibrant, fast-growing and services-driven economies of London and India have resulted in London becoming India’s gateway to Europe.”

UK leads G7 in broadband connections
The Global Information Technology Report 2004-2005, from the World Economic Forum (WEF), shows the UK has moved up from 15th to 12th place worldwide in terms of the use it makes of information and communication technology (ICT). Published for the fourth year and covering 104 economies in both developed and developing countries, the WEF’s ‘Networked Readiness Index’ puts Singapore in first position, followed by Iceland, Finland, Denmark and then the US, which has slipped from first last year. The rest of the top ten consists of Sweden, Hong Kong, Japan, Switzerland and Australia. Iceland was the biggest climber, moving up from 10th spot last year to second.

Although the UK scores less highly than a number of Nordic countries, it is ahead of most of the other leading European economies. Germany, for example, is ranked 14th, France 20th, Ireland 22nd, Spain 29th and Italy 45th. The WEF considers a number of factors in its evaluation, including the quality of a country’s maths and science education, its regulatory framework, the affordability of telephone connection charges and internet access, and government attitudes to ICT prioritisation and procurement.

Broadband internet access is now available to 96 per cent of the UK population and the country already has 6 million subscribers, making it the most extensive broadband market among the G7 countries, according to E-Commerce Minister Mike O’Brien. It reached the milestone in the third quarter of 2004, according to a report by technology consultancy Ovum. This met a government target, set in 2001, of seeing the UK become the biggest broadband market by 2005, though a second target – to be the most competitive market – has still to be met, with the UK currently in third place behind Japan and Canada. London Docklands hosted the 4th ASEM (Asia-Europe Meeting) on E-Commerce in February, which was attended by 480 delegates from government, business and academia in the 38 ASEM countries.

Figures from the Office for National Statistics, meanwhile, show that there was a 2 per cent increase in active subscriptions to the internet between January 2004 and January 2005. The market share for permanent connections continues to increase, and now accounts for 41 per cent of all connections, compared with 22.5 per cent a year ago. January saw a 5 per cent rise from December in the number of new permanent connections, with a year-on-year increase of 86.2 per cent.


Government pledges new funding for life sciences
The UK biotechnology sector continues to lead the way in Europe, according to a new government report. The research – Comparative Statistics for the UK, European and US Biotechnology Sectors: Analysis Year 2003 – found that there has been a general fall across Europe in biotech business activity, due to a wave of restructuring. However, the UK remains the most attractive country for investment, with 36 new biotech companies formed during 2003, $666 million of finance raised and 224 new products under development. The UK was also best for growth, with a 5 per cent increase in revenue compared with its European competitors. In science overall, the UK is a world leader. With 1 per cent of the world’s population, it undertakes 5 per cent of the world’s science, produces 9 per cent of all scientific papers and accounts for 12 per cent of all scientific citations.

In March the government announced $1.9 billion in funding for the biotech and life sciences industries, including stem cell research and DNA-based medicines. This is part of a total spending allocation of $19 billion for science over the next three years. The funding includes more than $1.9 billion for the Biotechnology and Biological Sciences Research Council; an increase to $2.9 billion for the Medical Research Council, including more than $836 million for clinical research into mental health, stroke, diabetes and cancer; and a boost of $570 million to help universities link up with business to create spin-out companies. The government has also committed $2.9 billion over the three years to build new laboratories.

In the meantime, Manchester University is to join forces with two of the city’s leading cancer research units to set up a new cancer research centre. Manchester is the UK’s biggest university, following its merger last October with Umist (the University of Manchester Institute of Science and Technology). It will integrate its research efforts with those of two long-established institutions: the Christie Hospital, which is Europe’s largest single-site cancer treatment centre, and the Paterson Institute for Cancer Research, the UK’s largest cancer research lab outside London. The new Manchester Cancer Research Centre will make Manchester one of the biggest cancer research and treatment centres in Europe.

Two US-based life sciences companies have made major investments in Scotland. Inverness Medical Innovations (IMI) is to invest $114 million over the next three years, through a UK subsidiary, to set up a research, development and manufacturing facility in Stirling. IMI specialises in diagnostic health products, including pregnancy tests and blood clot monitors. The new company, Stirling Medical Innovations Ltd, plans to identify technologies to develop home tests for the diagnosis and management of cardiovascular diseases. The investment, which has been supported by $7.2 million in Regional Selective Assistance from the Scottish Executive, will create around 500 new jobs.

Meanwhile, Virginia-based life sciences company Upstate has opened a new European HQ and manufacturing facility in Dundee. The company has consolidated its existing UK operations into a new purpose-built facility at the city’s Technology Park, where it will employ 100 people by the end of the year. Upstate specialises in designing compounds used by pharmaceutical companies in the design of drugs to fight diseases such as cancer and diabetes.


New initiatives announced for technology sectors
England’s Regional Development Agencies (RDAs) have announced that they will invest $684 million in 2006 in developing science and innovation, following the Chancellor’s Budget pledge to support the UK’s knowledge economy. The money will be spent on a range of initiatives, including assistance for small and medium-size companies to gain access to knowledge, support for collaborative R&D projects and infrastructure, and sponsorship of industrial placements for students and graduates.

Among initiatives already under way are Yorkshire Forward’s plans for an $18.5 million innovation and technology centre in South Yorkshire, to act as a focus for the region’s advanced engineering and metals industries. The ‘Accelerator’ will be built on the Advanced Manufacturing Park at Waverley in Rotherham, an ex-coalfield site that is being developed to act as a hub for the advanced manufacturing technologies industry. The three-storey facility will act as a meeting point for businesses and researchers, providing meeting rooms, conference facilities, exhibition space and café areas. It will also contain leased space for companies that wish to take advantage of the expertise on-site.

Yorkshire Forward has also announced a $9.5 million funding package for three university centres working with micro- and nanotechnology (MNT). The investment is aimed at building capability and allowing researchers to develop projects to the commercial stage. The three projects to benefit are the Nanofactory, which is based at the University of Leeds and also involves the universities of Bradford and Sheffield; the Polymer Interdisciplinary Research Centre, which involves the same three institutions; and the York-JEOL Centre for Nanolithography and Analysis, at the University of York.

The RDA has also provided $7.6 million to help fund a pioneering new chemical facility on the Humber. The Centre for Assessment of Technical Competence – Humber (CATCH) will enable companies to assess the ability of their workforce and develop new skills. It will be built on a 10-acre site at Kiln Lane near Stallingborough, between the towns of Grimsby and Immingham, and is scheduled for completion by February 2006.

In the North West, a new organisation for the motor industry has been launched. The Automotive Academy of the Northwest will be hosted by the Northwest Regional Development Agency’s cluster organisation for the automotive industry, the NAA. It will aim to ensure that globally competitive training programmes are available for companies in the region, and will promote skills development at all levels of the industry. The NWDA is also overseeing development of the Synchrotron Radiation Source (SRS) at Daresbury Laboratory in Cheshire, where it plans to spend $48.8 million by 2008 to build an international science and technology park.

Plans for a new design centre in the North East were confirmed in Gordon Brown’s Budget speech. The physical hub of the centre will be at Gateshead Quays, but it will involve a number of partners, including One NorthEast, the Design Council and the University of Northumbria’s School of Design. The centre aims to improve the competitiveness and productivity of companies in the region, and to give the North East a world-class capability in design, innovation, technology and creativity. Part of the $190 million Northern Way growth strategy, it should be built and operational within two years. The Chancellor also named three new ‘Science Cities’ in his speech: Bristol in South West England, Birmingham in the West Midlands and Nottingham in the East Midlands. They join three other cities – Manchester, Newcastle and York – as centres of excellence for science and technology.

Minimum wage to rise from October
The national minimum wage will increase from October, from $9.20 an hour to $9.60, taking it through the £5.00 mark for the first time. The increase is in line with average earnings, and there will be a further 6 per cent rise in October 2006, taking the rate to $10.17. The youth rate, which applies to 18- to 21-year-olds, will increase to $8.08 this year and $8.45 in 2006. The rises, in line with recommendations by the Low Pay Commission, will by 2006 boost the minimum wage to almost 50 per cent above the level at which it was introduced in 1999. The increases will extend the coverage of the legislation to 1.3 million workers this year and 1.4 million in 2006. Up to 70 per cent of low-paid workers who will benefit are women.

New regulations governing the hours worked by commercial drivers and crew come into force on 4 April. The Road Transport (Working Time) Regulations 2005 are designed to improve road safety and to make the road transport industry more attractive to new recruits. Its main provisions are that drivers’ weekly working time is limited to an average of 48 hours over a four-month period; a maximum of 60 hours can be worked in a single week; night workers are restricted to 10 hours’ working time in any 24-hour period; and workers must be allowed breaks.

The j4b online grants database, which carries details of government grants and public funding for businesses of all sizes, has been upgraded and expanded. The site includes a new searchable database of organisations that provide help and advice and other services, such as training, that are funded by the government. It is updated every working day. Visit it at: www.j4bgrants.co.uk.


Auto industry to consolidate production in 2005
Production of cars slipped by 3.7 per cent in January to a total of 136,034 units, although production for the home market climbed by 4.3 per cent, according to the Office for National Statistics (ONS). Output was down in comparison with the strong start seen in 2004, but was still on a par with 2003. Production of commercial vehicles fell by 13.5 per cent overall to 17,740 units, compared with January 2004, although exports rose by 11.6 per cent. Last year saw strong growth of nearly 11 per cent in this sector, but forecasts this year are for more modest growth. Overall, the outlook looks good for car production. Both Nissan and BMW have already announced major new investment programmes this year, taking the total invested in UK volume plants over the past five years to $5.7 billion.

The government is to make a grant of $19 million to Ford, which will help pay for a three-year training programme at the company’s engine plant at Dagenham in Essex, Eastern England. The grant has received approval from the European Commission, which vets all state aid to European industry. The training scheme will benefit 29,000 Ford workers and will boost competitiveness in the region.

ThyssenKrupp Automotive Tallent Chassis, a UK subsidiary of the German ThyssenKrupp group, is to invest $31 million at its plant in Newton Aycliffe in Co Durham, North East England. The company will install new robotic welding equipment, and will produce new chassis components for supply to UK and export markets. The investment, supported by a grant of $3 million from RDA One NorthEast, will safeguard 154 jobs and create a further 121 permanent posts by 2006. As well as being Aycliffe’s largest employer, with around 1,000 workers, Tallent is one of the longest established companies in the town, with a history stretching back to 1948.

In the meantime, Alphaform, a Finnish company that provides prototyping and tooling services to the automotive industry, is to establish a production facility at Newbury, South East England. The centre will support local production of rapid prototypes, as well as assembly of complete deliveries.


Customer satisfaction is key for logistics providers
Just over 30 per cent of UK companies in the mid-tier industrial sector outsource their entire logistics requirements to a third party, according to new research by industrial analyst Analytiqa. Around 50 per cent of manufacturers in this sector outsource less than one-third of their logistics requirements: 60 per cent maintain all or some of their warehousing operations in-house, while 30 per cent operate all or some of their own distribution activities. Some companies surveyed handled their own logistics to save time or costs, while others believed it gave them greater control over the services offered and thus allowed them to maintain customer satisfaction levels. When it comes to choosing a third-party provider, the quality of customer service is equally as important as price, though service capabilities, flexibility and technology services are also high on the list of requirements.

Analytiqa has also produced a new report, Outsourcing Trends in European Logistics, which examines the ways in which mid-tier companies in a variety of sectors across Europe handle their logistics operations. The analyst interviewed 625 companies in the industrial, automotive, retail, pharmaceutical and FMCG sectors with annual revenues of $120 million to $360 million. The research examines outsourcing dynamics and identifies business opportunities for logistics companies. For more details of content and pricing, visit: www.analytiqa.com.

Logistics provider Schenker recently undertook one of the world’s largest air freight shipments on behalf of Sony Computer Entertainment Europe (SCEE). Specially arranged charter flights from China to Nottingham East Midlands Airport (and also to the other three key destinations of Maastricht, Madrid and Sydney) allowed the company to meet its product launch date of 1 November for its new PS2 slimline playstation. Flights continued for 14 weeks, until late January. Each flight carried around 160 pallets, and was met by Schenker vehicles for onward distribution.


Crossrail back on the agenda as airports expand
Alistair Darling, the Secretary of State for Transport, has introduced a Bill that revives the $19 billion Crossrail project, which will provide a major new rail transport backbone for London, running across the city from west to east. The project, which has been considered in the past but subsequently shelved, will link Maidenhead in the west with Shenfield in the east and Abbey Wood in the south-east. Most of the outlying sections will make use of existing track and tunnels, but there will be a new tunelled central section, with sub-surface stations at Paddington, Bond Street, Tottenham Court Road, Faringdon, Liverpool Street, Whitechapel and the Isle of Dogs. The project will improve rail access to London and will provide an important boost to the city’s economic development, according to its supporters, who include Mayor of London Ken Livingstone.

In South Yorkshire, the first flights are due to take off from the brand-new Robin Hood Airport at Doncaster on 28 April. The new facility will offer scheduled, charter and long-haul flights to a variety of destinations. It will also offer a focus for business, with its own business park extending to 62 acres, offering almost 1 million sq ft of B1/B2 and B8 business space. The first phase of office development, known as Cirrus, will be adjacent to the airport passenger terminal; three buildings have been proposed for the site, of 10,000 sq ft, 15,000 sq ft and 20,000 sq ft. Other schemes planned include 40,000 sq ft of new office space and 100,000 sq ft of industrial space. Around 100 businesses are already based on the site, occupying more than 500,000 sq ft of space.

Other developments in Doncaster include a 121,000 sq ft speculative warehouse at Traxpark; a number of speculative developments at Denaby Enterprise Zone; and third-phase development of Aspect, a development on West Moor Park that includes a warehouse/distribution unit of 123,000 sq ft and is scheduled for completion by October. Swedish furniture retailer IKEA already has a 650,000 sq ft distribution centre on West Moor Park, which it plans to double in size to 1.3 million sq ft.

Other regional airports are expanding fast. Bristol, for example, reports that its passenger volumes have grown by 488 per cent from 1990 to 2004, with traffic doubling in the past three years to reach 4.6 million passengers. The airport, which is now owned by Spanish infrastructure group Ferrovial and Macquarie Airports of Australia, plans to expand its capacity to 6-7 million passengers this year, then to 8 million and eventually to 12 million by 2030. Go, the low-cost airline acquired by EasyJet, uses Bristol as its second operating base after London Stansted.

London City airport, which serves the capital’s City and Canary Wharf financial districts, is planning to invest $72 million over the next five years, with the aim of increasing passenger numbers from more than 1.9 million this year to 3.5 million by 2010. The airport has 13 airlines operating to 23 destinations, including 14 in continental Europe. It plans to offer flights to Glasgow and Newcastle this year, and possibly also Copenhagen, Stockholm, Madrid, Milan and Vienna. It is also growing as a centre for business aviation, with take-offs and landings by corporate jets expected to double from 7,000 to 14,000 by 2007. The expansion plan includes an extended terminal building and additional aircraft parking space. By the end of this year, the airport will also have a direct rail link, in the shape of the $247 million Docklands Light Railway extension.


Around the regions
The Hartford, a leading US investment and insurance company with assets worth $291 billion under management, has opened an office at Canary Wharf in east London. The company will recruit 50 staff by the end of the year and 100 by 2008 through its UK subsidiary Hartford Life Ltd, to work at the new office at One Canada Square. The company was assisted in its relocation by inward investment agency Think London. Lincoln Collins, Hartford Life’s chief executive, said: “We chose London as a focal point for our UK sales and marketing operations owing to its pre-eminence as a world-class financial centre and its access to a highly skilled labour pool.”

US medical technology company Viasys Healthcare has acquired the medical business of Oxford Instruments, based in Old Woking, South East England, for approximately $46 million. Based in Conshohocken, Pennsylvania, Viasys specialises in respiratory, neurocare, and medical and surgical products. Oxford Instruments specialises in equipment for neurodiagnostics and neurosupplies.

OpenService, a US-based provider of real-time security information (SIM) software, has opened a European sales and customer service office in Iver Heath, Buckinghamshire in South East England. Open is expanding internationally, in response to rising global demand for SIM products and a flood of new customers from the UK and Europe.

Tratec, a Dutch developer of cable television products, has merged with Technetix, a solutions provider to the broadband market based in Burgess Hill in West Sussex, South East England. The merger creates a diverse engineering and supply chain solutions company that will serve the broadband TV market from its UK HQ. It will retain Tratec’s base at Veenendal in the Netherlands to support R&D, distribution and sales operations in mainland Europe.

Florida-based GMPCS Personal Communications, the mobile satellite communications subsidiary of Telenor of Norway, has opened its first international office in London. The UK company, serving a growing list of customers in the EMEA region, will maintain a full stock of mobile satellite terminals featuring Inmarsat global area network (GAN), regional broadband GAN and, later in the year, broadband GAN terminals. Meanwhile TAZZ Networks, a US-based provider of broadband infrastructure technology, has opened a UK office in Ipswich, Eastern England, to complement its existing EMEA headquarters in Uxbridge, just outside London.

Aethra, an Italian communications provider and a specialist in video conferencing technology, has opened an office in the City of London. The new office will act as a focal point to coordinate the company’s activities across the UK. Envision Telephony, a US-based provider of software for contact centres, has opened an office in Bristol in South West England, to serve the UK’s well-established call centre market. The company’s Performance Suite includes products for agent monitoring and evaluation, coaching, e-learning, workforce management and business intelligence.

Bakkavör Group of Iceland is to acquire Geest, based in Peterborough, Eastern England, after making a bid of $854 million. Geest is one of the largest fresh prepared foods companies in the UK. It employs around 10,000 people and operates 38 factories in five countries.

Lafarge Plasterboard, a unit of the French construction materials company Lafarge, which has manufacturing facilities in Bristol, South West England, is to invest around $78 million to build a new plasterboard plant in the Midlands, in response to growing demand for the material. Work will begin on the plant this year; when it is completed, it will employ more than 60 people and will increase the company’s plasterboard capacity in the UK by more than 50 per cent.

Allposters.com, the world’s largest retailer of prints and posters, has opened its first European base in Birmingham in the West Midlands, creating 30 new jobs. The California-based company sells posters and prints, framed and unframed, online to markets around the world, with stock that ranges from posters of pop stars to fine art prints. It was looking to set up a European base for distribution and the manufacturing of frames, and chose a site at the city’s Gravelly Industrial Park. Allposters.com is the West Midland’s 1,000th overseas investment since 1991. Over the past 14 years, overseas investment has created 55,906 new jobs and safeguarded a further 119,574 in the region.

Covance, a US-based drug development services company, has opened a fully compliant current good manufacturing practices (cGMP) pharmacy at its clinical research unit in Leeds, Yorkshire and Humber. The new pharmacy, one of just a handful of such facilities in the UK, meets all European Union-defined directives for the manufacture of investigational medical products. Its services will include the preparation of aseptic doses for intravenous injection and the manufacture of formulations for first-in-human clinical studies.

Atmel Corporation, the US-based fabricator of semiconductors, has opened the second-phase expansion of its smart card integrated circuit design and test centre in East Kilbride in Scotland. The new facility will increase the capacity of the company’s smart card business and its test and wafer thinning operation, and will create 80 new jobs. Wafer thinning is the process used to tailor silicon chips for their end applications – for example, in mobile phone SIM cards, chip and PIN bank cards and electronic passports.

An ambitious new initiative aims to make Wales a key centre in the development of alternative fuel technologies. Hydrogen Valley aims to utilise existing infrastructure and to harness both public and private sector expertise to create a cluster of hydrogen-based technologies in South Wales. There are already seven hydrogen production sites, pipeline infrastructure and a research centre along the M4 corridor. Within ten years it is envisaged there will be hydrogen fuelling stations, zero/low emission integrated transport networks, hydrogen-powered water taxis and logistics hubs using electric vehicles to deliver goods to town centres. Baglan Energy Park already hosts a Technium for Sustainable Technologies and is seen as an attractive place for businesses in this sector to locate.

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