Partner Article

Norway draws blank as region misses out

As three Norwegian firms announce plans to expand into the region, a trade body has accused North East businesses of being blind to the hugely lucrative opportunities across the North Sea.

Plans were revealed yesterday for an e-learning company, a firm which develops flood defence systems and an IT business from Norway to all invest in growing their presence in the North East.

Two years ago Aquafence, based in South West Norway, came to Teesside to test its portable flood barrier on the Tees Barrage.

After an unsuccessful attempt to get its UK operation off the ground in the Midlands, the company now plans to set up a facility in the North East and has already shipped £250,000 worth of equipment into the region.

Meanwhile, Norwegian e-learning company Mintra is also in the process of establishing a base in the region, which is likely to create 15 jobs in the coming months.

And, Scandinavian IT company Inbusiness – based in Silverlink, North Tyneside – is currently in the process of recruiting new members of staff to grow its North East presence.

Last month Stavanger-based Pipetech agreed to create a new North East base manned by 15 people, while Ryanair has also launched a new flight from Newcastle to Oslo.

However, despite clear signs that the Norwegians are more than eager to do business with the North East, an event at Newcastle Racecourse last week entitled ‘Doing business in Norway’ failed to attract a single person.

The seminar, which was part of the hugely-popular Business Exchange North East event was organised by the Norwegian Collaboration Centre (NCC).

Mike Pedersen, head of the Centre – which builds trade links between the North East and Norway – said the indifference of North East businesses to the Norwegian market meant that firms were depriving themselves of hugely lucrative opportunities.

He said: “The UK buys £12bn of products every year from Norway but we only manage to sell £2bn worth to them and they are short of resources for production and people.

“I think North East companies are missing a trick here. If Norwegian can see a need to expand into the North East yet we can’t see the benefit of doing business in Norway.”

Firms which are interested in doing business with Norway, can join a free online market at the NCC’s website.

This was posted in Bdaily's Members' News section by Ruth Mitchell .