Land deals credited for massive increase in overseas investment

Telford has seen a huge increase in the levels of foreign direct investment (FDI) in the last year, dominated by Magna International’s decision to build its aluminium castings factory in the town.

Enterprise Telford, the body responsible for inward investment, attributed the success to its land deals programme that works with the Homes and Communities Agency to potentially free up 200 acres of employment land.

In 2016/17, Telford attracted £114m of overseas investment – almost £100m greater than the previous year. The investments also led to a leap in the number of jobs created – up from 117 in 2015/16 to 571.

12 FDI projects were signed off, of which seven were new investments. It includes the £77.7m investment by Canadian group Magna, creating 295 jobs.

Even stripping this project out, the number of jobs created doubled and the levels of FDI more than trebled during the year as Telford attracted significant investments from around the globe. For example, German group Borgers invested £9.5m on an expansion which created 70 jobs while there was a new investment of £6.0m from the UAE which also created 70 jobs at Logical Plastic UK.

“It’s fair to say that as a business destination, and in attracting foreign investment, Telford punches well above its weight on the national and international stage,” said Shaun Davies, leader of Telford & Wrekin Council.

“In the landscape of a post Brexit-vote economy and with uncertainty stalling key business decisions for many overseas firms, the significance of this achievement cannot be underestimated.”

The investments covered a range of sectors including digital, advanced manufacturing and technology.

Japanese giant Ricoh spent £3m as it created a first of its kind 3D printing consultancy, training and design showroom, aimed at showcasing its latest additive manufacturing capabilities while Indian digital consultancy Incessant Technologies invested £4.5m on an innovation centre that will act as a base for its UK consulting operation.

A number of Telford’s investment deals were made possible by the selling off and redevelopment of land previously owned by the Homes and Communities Agency.

Katherine Kynaston, assistant director responsible for Enterprise Telford, added: “Our Land Deal programme, as well as the business support we’re able to offer through Enterprise Telford has been a real catalyst for significant business investment.

“Not only does it allow us to bring forward sites quicker, but we’re also able to ready sites depending on the tailored needs of individual businesses, which is a very unique offer.

“We’re seeing a great deal of interest from automotive and advanced manufacturing firms as the region’s big players continue to expand, and we’re confident we can build on this momentum in the coming year.”

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