Foreign investment up in process sectors
21 Jul 2014
Nearly a fifth of all foreign investment in the UK is going to projects in the process sectors, according to a new government report.
UK Trade and Investment (UKTI) yesterday published its results for the 2013/14 financial year, showing that an unprecedented 1,773 projects benefited from foreign direct investment (FDI), up 14% from 1,559 in 2012/13.
Of these, around 350 projects that benefitted from FDI in 2013/14 were in the process industries, with Food & Drink processing leading the charge with 115 projects.
These results are a testament to the hard work of UKTI in identifying leads and working with companies to ensure they choose the UK
UKTI MD Michael Boyd
Other process industries mentioned in the UKTI report include biotechnology and pharmaceuticals with 67 projects, mechanical electrical and process engineering with 54 projects, and oil & gas with 52 projects. There were 61 renewable energy projects to attract FDI, and while the majority of these were in the wind sector, there were also process-based projects such as biofuel and biomass plants.
The figures echo Office of National Statistics figures that also show process industries accounting for just under 20% of UK FDI, with mining and quarrying accounting for 9%, oil, pharmaceuticals and chemicals 6%, and food and drink 4%.
“These results are a testament to the hard work and dedication of UKTI Investment staff in the UK and around the world, and our partner organisations across the UK, in identifying leads and working with companies to ensure they choose the UK to grow in,” said UKTI managing director Michael Boyd, commenting on the overall 14% increase.
“In 2013/14 we introduced new measures to identify and land higher-value and better-quality foreign investments, without compromising on numbers. We expanded our operations from 34 to 51 markets. Our Investment Organisations, which we expanded to new sectors last year, provide focus on key sectors aligned with our Industrial Strategies, utilising the skills of business leaders with high credibility in those sectors. And we were hugely successful in attracting investment into infrastructure, attracting almost £24 billion of commitments.”
One project highlighted in the UKTI report as a good example of its work with foreign investors is the re-opening of Hemerdon Tungsten mine near Plymouth, thanks to a £123 million investment by Australian miner Wolf Minerals.
“The mine will be one of the largest tungsten mines in the world, and is expected to generate £1 billion in exports over its lifetime,” says the report.
