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Sheffield Council agrees massive billion-pound Chinese investment deal

The largest UK-Chinese investment deal outside of London has been signed that will see Sheffield benefit from £1bn-worth of construction projects over the next 60 years.

Sheffield City Council signed the deal, which will unlock initial funding worth around £220m to fund up to five city centre projects in the next three years, with Sichuan Guodong Construction Group following a visit to its Chinese sister city Chengdu.

The exact projects are yet to be shaped, but Councillor Julie Dore, who is Leader of Sheffield City Council, has said that it will be up to the council exactly which projects will benefit from the investment.

Describing the deal as ‘a real partnership’, Julie also explained that the long-term nature of the agreement will mean that a wider range of projects, benefitting the whole city, are now possible.

She added: “The projects funded by this investment will be determined by Sheffield City Council, and the 60 year commitment secures a stream of investment into our city for the next generation, and means a whole range of projects become viable because of the long-term nature of the relationship.

“At a time of unprecedented uncertainty and turmoil on the national political scene, we have taken the bull by the horns and led by example here in Sheffield. We have the skills and the connections to drive economic growth in our city.”

The deal is the culmination of 18 months of negotiations with Guodong, who are one the largest companies in Sichuan Province, with the construction firm’s Chairman of the Board and President, Mr Wang Chunming, visiting the city on a number of occasions.

He has said previously: “Sheffield really does stand out amongst all UK cities as an outstanding business investment. This agreement illustrates our confidence in Sheffield as a city going from strength to strength, with real growth potential. We are looking forward to being a part of this over the coming decades.”

Councillor Leigh Bramall, Deputy Leader of Sheffield City Council, said that today’s agreement could create ‘hundreds, if not thousands’ of jobs over the coming years, and stressed that, although the investment has come from abroad, it would be the city’s residents who would benefit.

She said: “This agreement is groundbreaking. It will see the resources made available to deliver the vibrant, growing city centre our city needs.

“This will make Sheffield even more attractive to inward investment, create jobs and enable us to compete with other big cities. It demonstrates our ambition for the city.

“We have gone out and made this happen, not sat back and waited for others to come to us. Chengdu and Sichuan Guodong Construction Group are some of the best partners out there and we look forward to further strengthening our ties with the city to make this exciting project happen.”