August 2006

News

Number of overseas investors coming to UK hits new high
More than 1,200 overseas firms chose to invest in the UK in 2005/06, according to the latest figures from UK Trade & Investment (UKTI), the government’s main inward investment agency. This was the highest annual total to date, and 14 per cent more than the 1,066 projects recorded in 2004. Overseas companies set up operations in every corner of the UK – ranging from bio-pharmaceutical research and development in Eastern England to software development in Northern Ireland, automotive component manufacturing in the West Midlands and food production in the East Midlands.

As well as a large number of projects, there were also many individual investments of high value, a trend that UKTI chief executive Andrew Cahn described as “moving up the value chain – into the most technically demanding, high value-added, knowledge-based areas where we have a real competitive edge. Moving up the value chain means applying our strengths to attract investment in high-value activities: R&D, science and technology, design and European headquarters.”

Compared with the previous year, the number of direct new jobs created by overseas investors fell by 14 per cent to 34,077, although the number of associated jobs created or safeguarded rose by 19 per cent to just under 90,000. Of this total, 14,431 jobs were created by US firms. Some 26 per cent of projects were expansions by existing investors, and these generated nearly 65 per cent of the new jobs created.

The biggest investment sector was ICT, which attracted 284 projects in IT, software, e-commerce and the internet. The number of software projects grew by 26 per cent to 150 while the number of IT and commerce projects rose 12 per cent to 134. The total of R&D projects increased by 62 per cent from 2004 to reach 164, while pharmaceuticals and biotechnology projects grew 19 per cent to 98.

Major R&D investments included the decision by Amgen of the US, the world’s biggest biotechnology company, to more than double its R&D operations in London to support development of over 40 new products in the pipeline. Similarly, Japanese pharmaceuticals giant Eisai invested $135 million in a strategic European base in the UK. The new hub will put the company’s European HQ, R&D, clinical development and manufacturing operations all under one roof, and will ultimately create 300 new jobs.

The number of mergers and acquisitions (M&As) was 42 per cent up from the previous year, while the number of overseas investments in the financial services sector increased to 75. The tally of overseas companies choosing to locate their headquarters in the UK rose from 105 in 2004/05 to 151. UKTI’s Global Entrepreneurs Programme (GEP) more than doubled its success rate over the year, helping 22 niche, technology-rich companies to move to the UK. Since its inception, the programme has raised more than $100 million from venture capitalists around the world to support companies moving to the UK.

By country, the US remained the largest source of foreign direct investment (FDI) with 446 projects. However, the number of Asia-Pacific investors jumped by 40 per cent to 316 and the number of Indian firms investing in the UK increased by 111 per cent to 76, moving India up from seventh to third place in the investment league table. Japan was the second largest source of FDI, and there was a 47 per cent surge in the number of Japanese firms investing.

Trade and Industry Secretary Alistair Darling commented: “These figures are proof that the UK is a great place to do business and the best base from which to compete internationally. Increasingly the UK is seen as the international centre for business, enabling companies to achieve growth by accessing world markets.”

Ian McCartney, Minister for Trade and Investment, added: “These results are excellent news for Britain’s economy and for British jobs. We want to attract dynamic companies with strong potential for growth, meaning we create jobs and ensure that British workers have the skills needed to meet the challenges of a globalised economy. We want to continue to help such companies come to the UK, to grow in the UK and indeed to be recognised as UK companies.”


Varied investment means successful year throughout regions
London recorded a 15.4 per cent increase in FDI over the past year, according to the UKTI annual report. The UK capital attracted 323 new FDI projects between April 2005 and March 2006. These generated 4,412 new jobs – an 11 per cent increase from the previous year – while 2,340 more were safeguarded. North America remained the leading source of investment projects, but emerging markets are playing an increasingly important role. For example, 32 Indian companies set up operations in London last year, creating 547 jobs, and the city expects increased levels of foreign investment from China, Brazil and Russia in the years to come.

“London continues to be a magnet for investment into the UK and Europe and this trend looks set to continue,” said Michael Charlton, chief executive of Think London, the capital’s inward investment agency. “The 2012 Olympic Games will present further opportunities for businesses across most sectors. FDI in London generates high-skilled, high-paying jobs which play a fundamental role in supporting the city’s economy and which bring economic benefit to the UK as a whole.”

London remains the number one destination in Europe for FDI, according to Ernst & Young European Investment Monitor, attracting 5.7 per cent of all European FDI, more than any other city. In a bid to boost investment further, in recent months Think London has opened new offices in New York and Beijing, and has plans for more in key overseas locations in the next 12 months.

Elsewhere in the UK, Regional Development Agencies (RDAs) have also reported a successful year. Yorkshire Forward, the RDA for Yorkshire and Humber, for example, attracted $162 million of foreign investment over the year, up 15 per cent from 2004/05. This helped to create or safeguard 3,337 jobs, an increase of 6 per cent from a year earlier. A total of 29 overseas-owned companies invested in the region, the majority of them from Europe, North America and Asia-Pacific. Four companies between them accounted for $137 million of the investment total. More investment went into knowledge-driven businesses: this sector increased its share to 41 per cent of the RDA’s direct investment total. Sectors included bioscience, chemicals, digital technologies, engineering, food and healthcare, while big-name investors included USStar Compliance and AMT 3D Ltd.

The East Midlands Development Agency (emda) exceeded its targets for the year, with 74 new projects (up 9 per cent from the previous year), creating or safeguarding 4,546 jobs (up 25 per cent). Projects ranged from automotive and aerospace manufacturing to healthcare research and product development. Investors active during the year included the US-based aerospace company Northrop Grumman, which expanded its operations in Lincolnshire; Greek chemical manufacturer Ultra Care Products, which created 23 new jobs in Nottingham; and two German firms, Truma (UK) Ltd in Derbyshire and Bott Ltd in Ashby de la Zouch in Leicestershire.


New focus for UKTI as City launches promotional campaign
Following on from this year’s successful performance, the government has unveiled a new five-year plan for UK Trade & Investment, designed to further encourage inward investment and to support UK-based exporters. Trade and Industry Secretary Alistair Darling said that the plan – labelled ‘Prosperity in a Changing World’ – would streamline the agency and concentrate its resources on the areas where it could be most effective. “We have quite consciously revamped UKTI… We’re streamlining it, making it more effective and asking it to prioritise,” he said. The aim is for the agency to become a more entrepreneurial-minded organisation, closely focused on the needs of its customers.

One priority will be to target emerging export markets. Under the plan, UKTI will divert $9 million from its annual $450 million budget to back exporters to mature markets, in favour of concentrating on China, India and other emerging economies. Currently, UKTI estimates that for every $1.8 million it spends on supporting exports, $31 million of net benefits are generated. A further $16 million will be reallocated to an ‘intensive support’ programme aimed at increasing the amount of business R&D in the UK. Other elements of the plan include increasing value added to inward investment by encouraging relationships with high-value, overseas-owned companies; targeting innovative R&D companies; and lobbying internationally on regulatory issues and barriers to trade and investment.

UKTI will also work with Chancellor Gordon Brown and other high-level stakeholders from business and government on a new initiative to promote the City of London and the UK financial services sector to overseas investors. The initial budget for this is a relatively modest $450,000 over three years, but UKTI chief executive Andrew Cahn insists that this will be enough to ‘pump prime’ the campaign. Amid warnings that the City cannot afford to be complacent, the initiative will bring together senior figures from the financial world to identify London’s strengths and weaknesses, attract business from emerging growth markets and fend off competition from new, lower-cost centres such as Dubai, Mumbai and Shanghai. It will organise missions to countries that offer the greatest opportunities and will draw up strategies for emerging countries such as India, China, Russia and Brazil. Among those involved in the initiative will be Lord Levene, chairman of Lloyds of London, and Ken Livingstone, mayor of London.


UK claims world’s largest share of FDI
The UK was the world’s largest recipient of FDI in 2005, attracting $165 billion, according to a new report from the Organisation for Economic Co-operation and Development (OECD). This was the largest amount of FDI ever recorded in the UK and treble the $56 billion received in 2004. Worldwide, FDI into OECD countries jumped 27 per cent to reach $622 billion, up from $491 billion in 2004 and $465 billion in 2003 and its highest level for four years. Mergers and acquisitions (M&As) accounted for half the total.

The report, Trends and Recent Developments in Foreign Direct Investment, attributed the rise in the UK’s share of FDI in part to the restructuring of multinational firms, such as Royal Dutch Shell, and in part to a number of large cross-border M&A deals. These included the takeover of P&O by Dubai Ports World of the United Arab Emirates for $8.2 billion and the acquisition of distiller Allied Domecq by Pernod Ricard of France. The biggest deal was the takeover in early 2006 of telephone operator O2 by Telefonica of Spain, a transaction valued at $31.7 billion.

The US was the second largest recipient of FDI worldwide with $110 billion, 18 per cent down on the 2004 total. At the same time US outward investment fell to virtually zero, although according to the OECD this was likely to be a temporary phenomenon linked to changes in the US tax regime. France was the most active outward investor, with aggregate flows totalling $116 billion, although $48 billion of this was down to just four deals involving takeovers of foreign companies by French corporations. Outside the OECD area, China’s total FDI amounted to $72 billion – third only to the UK and the US. Chinese outward investment also continued to grow, to $7 billion, as Chinese investors targeted a wide range of sectors globally.

The OECD warned against countries putting a brake on investment and growth because of concerns about national security and the control of strategic interests, such as natural resources. “Governments have in some cases sought to discourage foreign takeovers, triggering accusations of protectionism,” cautioned the Paris-based organisation.


UK firms create more wealth than European counterparts
The top UK companies are outperforming their counterparts in the rest of Europe, according to the 2006 Value Added Scoreboard, published by the Department of Trade and Industry (DTI). The Scoreboard, now in its fifth year, lists the value added, or wealth created by the top 700 countries in Europe and the top 800 in the UK. Wealth creation by large UK companies increased by 10 per cent in 2005, more than in France and Germany, and the UK had 197 companies ranked in the top 700, more than any other European country. These 197 companies had a combined value of $725 billion, while the 96 German firms on the list were worth $558 billion and the 91 French firms $518 billion.

According to the DTI, UK companies have a higher wealth creation efficiency, adding more value at less cost. The efficiency rating for companies in the UK 800 is 161 per cent, while the 197 companies in the European 700 recorded a figure of 173 per cent, compared with an average of 153 per cent. Some 64 per cent of the value added of the European 700 is concentrated in the UK, France and Germany and in the top six sectors (banks, oil and gas, automotive, fixed-line telecoms, travel and leisure and utilities – 44 per cent) and in the top 100 companies (57 per cent). A company’s ability to create wealth efficiently tends to be rewarded with a better stock market performance, according to the data. The value of a portfolio of 21 companies from the European 700, from 21 different sectors, grew by 109 per cent over the period 2003-06, compared with an average of 69 per cent for the FTSE 350.

The DTI’s Global Watch Service (GWS), which helps UK companies to benefit from the technical expertise of other countries, has also published its annual report, and claims to have had its most successful year to date. Key achievements for 2005-06 included facilitating more than 30 technology fact-finding missions to 16 different countries; part-funding more than 70 secondments to encourage technology transfer through the movement of key people to and from more than 20 countries; and completing the expansion of the International Technology Promoters (ITP) network from 16 to 22, as promised in the 2003 Innovation Report. The GWS helped to facilitate more than 1,700 meetings between UK companies and individuals and their overseas counterparts, and secured over 170 technology partnering agreements, brokered by ITPs, over the course of the year.

Icelandic investment firm Exista is opening a new London office, following the lead of compatriots such as Icelandair, which set up a London office in May. The firm is expanding its existing UK operations in preparation for a $5 billion flotation on the Reykjavik stock exchange in September.

The company, built up by brothers Agust and Lydur Gudmundsson through a series of acquisitions, is Iceland’s largest insurer, as well as being the biggest shareholder in both Iceland Telecom and Kaupthing, the country’s biggest bank. When it lists, it will become Iceland’s second biggest company after Kaupthing. It also hopes to make an estimated $612 million of acquisitions in the UK and Europe over the next year. Exista claims to have already invested $1.8 billion in the UK over the past five years, including the $1.1 billion takeover last year of food company Geest. The company is the UK’s biggest manufacturer of ready meals and its food business, Bakkavör, supplies major supermarket chains such as Tesco and Marks and Spencer with products ranging from prepared salads to desserts. With an annual turnover of $2 billion, it has overtaken the longtime market leader in this sector, Northern Foods. KBC Bank, one of Belgium’s largest banks, has opened a new office in Leeds, Yorkshire and Humber, boosting the city’s reputation as a regional centre for the financial services industry. KBC has 2,000 branches in more than 20 countries, serving some 12,000 customers. Its new office will provide a range of corporate banking and trade services to medium-sized companies throughout the north of England. It becomes the latest of more than 30 financial and professional services organisations to establish a presence in Leeds over the past ten years. The financial services sector now employs 10 per cent of the city’s workforce. India’s largest bank, the State Bank of India (SBI), has opened a branch in Birmingham in the West Midlands. The branch is located in the Handsworth district, at the heart of one of the city’s thriving Indian business communities. SBI has been operating in the UK since 1921. It has three branches in London and opened new branches in Manchester and Leicester earlier this year. The Birmingham branch will offer a range of services for both personal banking and corporate finance.

School initiative to mould new generation of entrepreneurs
Entrepreneur James Dyson – the man who created the Dyson bagless vacuum cleaner – has given his backing to a new kind of school that is intended to encourage the UK’s next generation of engineers, designers, inventors and entrepreneurs. The Dyson School of Design Innovation will open in Bath, South West England in September 2008. It will offer young people practical programmes in engineering, design and enterprise, together with hands-on experience of the latest technologies, of a type more often seen in industrial R&D centres. Some 2,500 students from Bath and the surrounding area will attend the school, 16-18-year-olds full-time and 14-16-year-olds once a week.

The $40.4 million public-private initiative involves the educational charity the James Dyson Foundation, the Department for Education and Skills (DfES), the Learning and Skills Council (LSE) and the South West RDA. Also involved are high-tech partners such as Airbus, Rolls-Royce and Williams F1, which will donate prototypes to the school and whose engineers will be involved on a daily basis through an industry mentoring programme. Practical courses will be taught alongside academic work, linking thinking with doing. “The school will allow young people to explore ideas, experiment and solve real-world problems. We want to encourage future generations of design engineers,” commented Dyson.

A new study has concluded that Cambridge University contributes $1.7 billion in direct expenditure to the UK economy each year. Cambridge in the East of England is home to Europe’s biggest cluster of biotechnology companies, with around 900 innovation-focused companies based locally.

According to the study by Cambridge research firm Library House, teaching at the university has led the growth of an entrepreneurial spirit in the region. To date, 51 high-tech companies have spun out directly from the university, including 33 in the biotechnology sector and seven in IT and telecoms. The report points out that researchers associated with Cambridge have won more Nobel Prizes than at any other university – 81 in total. This level of innovation ranks Cambridge firmly among the top three research universities in the world, it concludes. A pioneering science facility at a science park in Oxfordshire, South East England has marked a major milestone with the production of its first synchrotron lightbeam. The $540 million Diamond Light Source is the biggest science facility to be built in the UK for 30 years. At the centre of the machine is an 1,840ft ring that produces very intense beams of X-rays and ultraviolet light, which can be used to reveal, treat and transform a vast range of materials. The main users of synchrotron light are university researchers, but high-tech start-up companies are already benefiting from facilities like Diamond. Applications for synchrotron research include environmental technologies, the agrobiology sector and nanotechnology. The Diamond Light Source facility is funded by the government and the Wellcome Trust and will eventually employ a team of 300 engineers, scientists and technicians. The Diamond Light Source facility, Oxfordshire

A new university has been created in Cumbria in North West England. The University of Cumbria will incorporate the former Penrith and Carlisle campuses of the University of Central Lancashire (UCLan), together with St Martin’s College and the Cumbria Institute of the Arts. It will be based in Carlisle, with hubs in West Cumbria, Kendal and Barrow. The network will also include UCLan, Lancaster University and the Open University.


DfT gives regions a say in funding priorities for transport schemes
The Department for Transport (DfT) has announced a new round of funding for transport infrastructure schemes around the country. In a departure from previous years, RDAs and other regional agencies have been given far greater freedom to decide priorities in the way funding is used, in consultation with local authorities. The North West Regional Assembly (NWRA), for instance, has welcomed the announcement of $2 billion for new transport schemes in the region. This means that major schemes such as Metrolink in Manchester, Blackpool Tramway emergency works in Lancashire, the A34 Alderley Edge and Nether Alderley Bypass in Cheshire, the Carlisle Northern Development Route in Cumbria and the Mersey Gateway will all get the go-ahead, together with 31 other schemes throughout the North West.

In the South East, similarly, $738 million has been allocated for transport improvement schemes. Thirteen new projects have been agreed for the next three years and these, it is hoped, will help deliver sustainable economic growth in the region. They include a tunnel for the A3 trunk road at Hindhead in Surrey; improvements to the M27 in South Hampshire and the A27 in East Sussex, as well as to the A2 in North Kent and Junction 11 of the M4 near Reading; and the Bexhill-Hastings link road. In addition, a new access road scheme for East Kent has been approved.

In the East Midlands, DfT funding will be used for 12 new schemes, as well as for five currently under construction. The latter include maintenance work on the Derby Inner Ring Road, the Oakham Bypass in Rutland and transport schemes in Nottinghamshire and Northamptonshire. The new schemes include several with direct links to economic regeneration activity, such as the MEGZ M1 motorway junction scheme, the A47 Earl Shilton bypass in Leicestershire and the A158 Burgh Le Marsh Bypass, and the A43 Corby Link Road. Others are strategically important for the region, such as the widening of the A453 from Nottingham to the M1 and junction improvements on the Peterborough-Blyth section of the A1.


Road freight volumes show modest rise for 2005
Freight moved within the UK by GB-registered heavy good vehicles increased by 0.3 per cent in 2005 from the previous year, from 152.2 billion tonne kilometres to 152.7 billion tonne kilometres, according to the DfT. The amount of freight lifted was little changed from 2004 at 1,746 million tonnes, but was 6 per cent more than in 2003 and 9 per cent higher than in 1995. Articulated vehicles over 33 tonnes gross weight continued to claim a larger share of all goods moved: 72 per cent of total tonne kilometres in 2005, compared with 63 per cent in 1995. The average length of haul has increased over the long term, from 68km in 1980 to 87km in 2005, although there has been relatively little change since 1995. Just over half of all goods (53 per cent) are moved a distance of 50km or less.

The total number of vehicles of all nationalities travelling to mainland Europe in 2005 was 2.77 million, 1 per cent more than in 2004 but 71 per cent higher than in 1995. Powered vehicles accounted for just over 2 million of this total, an increase of 3 per cent from 2004 and 113 per cent since 1995. The remaining vehicles were unaccompanied trailers. UK-registered vehicles accounted for 26 per cent of all powered vehicles, compared with 26 per cent in 2004 and 51 per cent in 1995. Eighty-four per cent of powered vehicles travelled to the Continent via the Dover Straits in South East England, compared with 70 per cent in 1990.

EWS, the UK’s largest rail logistics company, is to reorganise its operations into four new divisions later this year. Each will have a clear focus on a particular market sector. EWS Energy will move coal and other fuels for the energy sector; EWS Industrial will carry heavy industrial materials, such as metals and petroleum products;

EWS Construction will deal with products for the construction and waste industries; while EWS Network will provide services for Network Rail, the rail industry and the logistics sector. According to EWS chief executive Keith Heller, the new structure will enable service delivery and market development to be more closely matched to customers’ requirements, and is intended to stimulate growth in rail freight.

Two major investment schemes for ports in Cumbria have been kickstarted with the provision of funding by the North West Development Agency (NWDA). In Barrow, a $9 million investment has allowed local councils to buy 99 acres of land from Associated British Ports, as the first step in a wider regeneration plan for the town. In Workington, the local Port Investment Programme has received $1.3 million from NWDA, which will be used to refurbish one of the port’s berths and for infrastructure work around its rail freight container park. Both schemes are being led by West Lakes Renaissance.

Low-cost airline Ryanair is to launch new services from Glasgow Prestwick Airport in Scotland to Eindhoven in the Netherlands and Riga in Latvia. The new routes, which go into service from 31 October, are expected to carry 130,000 passengers in their first year of operation. The company was encouraged to choose Prestwick by Scottish Enterprise and the Route Development Fund, an agency of the Scottish Executive.


Regional news

Clickatell, a US-based provider of bulk SMS services, has opened an office in London to service the growing European market. One of the company’s most important markets is the financial services sector, where it provides text messaging and security alert services for consumer and corporate banking clients. Until now all its customer services for European clients have been managed through its call centres in Cape Town, South Africa. According to the company, although it conducts a high proportion of its international business online, some clients – especially financial services institutions and government organisations – require a face-to-face service. London was the obvious location to set up a new office, on account of its status as a financial services hub. Clickatell plans to use the contacts it establishes with UK companies to expand its customer network throughout Europe.

US software firm Datalabs is to open an office in Reading, South East England as it targets potential clients in the European pharmaceutical sector. The company develops internet-based software applications for clinical trials that help pharmaceuticals firms to develop new products more quickly and with fewer resources. It increasingly sees Europe as an important growth area for the industry, and is among the growing number of US companies in this sector starting up overseas operations.

Lemo (UK), a subsidiary of the Swiss-based Lemo Group, is to invest $7 million to redevelop its facilities at Worthing, West Sussex into a flagship site. The company, which makes high-tech electrical connectors, could potentially double its workforce to 80 within five years. Lemo is at the forefront of the current boom in programme production for high-definition television (HDTV) and also serves the medical, test and measurement markets. It needed to expand in response to rapidly rising demand for its optical connections for HDTV camera systems.

Motorola has acquired TTPCom, a leading independent supplier of wireless technology intellectual property to the semiconductor and handset industries. The company, based in Royston, Hertfordshire in Eastern England was purchased for around $185 million through DPA, a wholly-owned Motorola subsidiary established specifically for this purpose. Ron Garriques, president of Motorola’s Mobile Devices business, said: “TTPCom is a leader in wireless software platforms, protocol stack and semiconductor solutions and is a highly complementary addition to Motorola’s mobile device technology portfolio. We already have a strong relationship with TTPCom and look forward to continuing the momentum it has built with its customers and partners across the mobile industry.”

Moscow-based 1C Company, which specialises in the distribution, publishing and development of interactive computer games and business software, has opened a new UK office. “As the biggest company in the Central and Eastern European games market, 1C works with the leading Western publishers and distributors. The main goal of the UK office is to strengthen our position among these companies, to enhance our presence in the West,” said Nikolay Baryshnikov, the firm’s international sales director.

Entragrativ, a California-based manufacturer of wireless communications technology, has set up a new international headquarters and R&D operation in Liverpool, North West England. The company designs and manufactures interactive terminals that are used for a wide range of applications, including in hotels and hospitals and for conferences and exhibitions. Having decided to target the European market, the company was attracted to the UK by the availability of R&D grants and tax credits and a favourable corporate tax environment. It was assisted by UK Trade & Investment’s Global Entrepreneurs Programme (GEP), which identified the best incentives package, helped the company to relocate and put it in touch with local business partners and universities.

Russian gas giant Gazprom is to enter the UK market by buying Pennine Natural Gas (PNG), a small gas distribution company based in Cheshire, North West England. Although PNG employs only 12 people, it supplies a number of leading UK businesses, including retailer Debenhams. The acquisition comes two months after Gazprom expressed an interest in buying Centrica, the owner of British Gas, as part of ambitious expansion plans to become a major player in Western Europe. Some commentators have raised concerns that increased Russian control over the energy sector might allow the Kremlin to use it as a political bargaining tool. Russia, however, insists that its expansion plans are motivated purely by business reasons.

Homecraft Rolyan, one of the UK’s leading suppliers of rehabilitation and physiotherapy products, has opened a new 88,000 sq ft facility in Huthwaite, Nottinghamshire in the East Midlands. The firm, owned by the Patterson Company of Minneapolis, distributes more than 15,000 products to a variety of customers, including National Health Service and private hospitals, local authorities, mobility shops, private customers and overseas distributors. It currently employs 120 staff but plans to expand in the near future. The move to the new premises was assisted by a $135,000 Selective Finance for Investment in England (SFIE) grant from local RDA the East Midlands Development Agency (emda).

Yorkshire Forward has won a bid to host the International Indian Film Academy (IIFA) Awards in 2007, beating off a rival bid from New York. Attended by the biggest stars in Bollywood cinema, the annual IIFA Awards attract a global audience of more than 400 million people. They are expected to draw over 30,000 visitors to Yorkshire and to raise the region’s international profile considerably. Taking place in June next year, the four-day event will culminate in an awards ceremony at the Sheffield Arena. It will also include a charity celebrity cricket match and a global business forum sponsored by the Federation of Indian Chambers of Commerce. This will showcase Yorkshire to Asian investors and promote bilateral trade between the region and India.

North Lincolnshire Council Economic Development Team has launched a new CD-ROM to promote the area to potential investors. It contains information about the main business sectors in this part of Yorkshire and Humber, including chemicals, food and drink, metals, engineering and manufacturing. It also includes details about business opportunities and commercial property sites in the area, as well as web links to useful contacts for investors. For more information, contact Nicola Raines at: nicola.raines@northlincs.gov.uk.

Imagine Communications Group, a telecommunications firm based in the Republic of Ireland, is to create 300 new jobs at a call centre in Armagh, Northern Ireland over the next few years. The jobs will be based at the city’s A:Tek centre, and Invest Northern Ireland has contributed $4 million towards the investment. The Imagine group supplies business services in the Republic of Ireland and is also currently signing up 1,800 residential customers a week.

GlaxoSmithKline has announced plans to invest a further $45 million in its site at Montrose, near Dundee in Scotland. The site, which makes ingredients for a number of pharmaceutical products, was scheduled to close at the end of 2007, but a significant pipeline of new products and a need for more capacity means that GSK will now keep it open. The plant will provide strategic back-up for at least four key active ingredients used in products to treat asthma, diabetes and heart disease, with the potential of supplying others.

Meanwhile the UK Cystic Fibrosis Database, based at the University of Dundee, is to be extended across Europe in a bid to encourage collaboration in research across the continent. The European Commission has awarded a grant of $2 million to establish a new body, EuroCareCF (European Co-ordination Action for Research in Cystic Fibrosis). Some $480,000 of that will go to the centre in Dundee to enable its patient registry programmes to expand across Europe.

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