£130m of foreign direct investment creates 500 new jobs in UK automotive sector

Minister for Investment Graham Stuart has welcomed £130m of foreign direct investment (FDI) into the UK automotive sector, creating nearly 500 jobs in four new plants across the country.

This announcement follows on from a report by EY which found the UK remains the number one destination for FDI in Europe in 2017 to 2018.

With support from the Department for International Trade, four separate companies from across the globe - including Steel & Alloy, Polytec and Magna - have all chosen to invest in the UK and open new automotive-related plants this month.

As the UK forms its own trade and investment policy for the first time in four decades, this marks the latest boost for a sector which exported £41.3bn of products, including 1,340 000 vehicles, in 2017 – up from £37.8m on 2016 - to over 160 international markets.

According to SMMT, more than 137,000 new vehicles rolled off the UK’s production line this May.

Graham Stuart, Minister for Investment, said: “The opening of these four new plants is a fantastic example of investment pouring into the UK from around the world, which I witnessed in Oldbury.

“This is a clear sign of confidence in the strength of the UK’s automotive sector, which remains one of the most competitive in the world.

“As an international economic department, this is an excellent example of the work that DIT - with its sector-specific expertise and capability - is doing to create jobs and prosperity for communities up and down the country.”

The new factories include:

• Magna International Inc: A new aluminium-casting factory in Telford to support Jaguar Land Rover, the £77.6m investment from the Canadian company will create 295 jobs when at full capacity
• Polytec Ltd: A new facility in Telford will build bumpers and accessories for car manufacturers, including Jaguar Land Rover. Austria-based Polytec have invested £18m in the project, which will create 100 jobs
• Steel & Alloy Ltd: £26m investment by S&A’s Spanish parent company Gonvarri to build a steel processing plant in Oldbury, creating 60 jobs. Customers include Ford, JLR and BMW