Partner Article

Foreign investment impact revealed

OVERSEAS investment created or safeguarded 6,673 jobs in the North East over the last year, it was announced yesterday.

The inward investment figures were announced at the UK Trade & Investment Business Summit attended by over 100 of the UK’s leading investors.

Nationally, 94,346 jobs have been created or safeguarded as a result of direct foreign investment in UK, up by almost 16,000 on the previous year. In the North East, almost 2,900 jobs were created and just under 3,800 safeguarded by 68 projects, such as Nissan’s March announcement that it is to build its new electric car in Sunderland from 2013.

One North East has played a key role in attracting or retaining these overseas businesses in the region and a further five UK-based firms in 2009/10.

In total, it is anticipated that these investments will lever in capital expenditure of just over £723m by the investing companies – over £520m more than 2008/09. Around 82% of all the inward investment that came into the North East in 2009/10 came through the Inward Investment team at One NorthEast.

Using the calculation of budget spent against capital investment attracted, the agency’s Inward Investment and Aftercare team has achieved a figure of £387 investment in the region for every £1 spent.

This takes in the announced Nissan investments that accounted for well over £400m of capital expenditure alone in the North East. Chief Executive of UK Trade & Investment Sir Andrew Cahn said: “Today’s results are a real vote of confidence in the North East, but we must work harder to continue to attract inward investment in what is a very competitive global marketplace.

“Overall, inward investment fell by 10 per cent across Europe, but the UK remains the number one destination in Europe for FDI.

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