Tories earmark automotive industry and HS2 as engines for West Midlands growth

GROWTH proposals for the West Midlands during the next Parliament have been outlined by the Prime Minister and Chancellor of the Exchequer.

In an attempt to claim the economic advantage in the run-up to May’s General Election, David Cameron and George Osborne visited the region to outline a five-year plan for growth during 2015 – 2020.

The plan intends creating 300,000 new jobs and unlocking £5.2bn of private sector investment.

A lot will focus on the development of the HS2 high speed rail link, which will be headquartered  in Birmingham, including a high speed rail investment summit in the city.

However, the plan also includes capitalising on the opportunities presented by the region’s big manufacturing success story – the automotive industry.

Key to this will be the expansion of the MIRA Technology Park, near Nuneaton. The 1.75 million sq ft technology park is a designated Enterprise Zone – a factor which has proved key in attracting businesses to the site.

Chancellor Osborne confirmed that – as the UK’s largest automotive Technology Park – MIRA’s Enterprise Zone would expand in size, taking it to a proposed total of two million sq ft.  
 
Already confirmed as new tenants of the site are GKN, Continental and Goodyear, which are all taking space within a newly-created, highly secure multi-tenant 27,500 sq ft Technology Centre, which has just been completed at the site.
 
Also complete and opened in time for yesterday’s visit was the 25,500 sq ft bespoke building for Swedish firm, Haldex, which is locating its new European Technical Centre at the site.

Together, the four companies are set to bring an additional 100 jobs to the technology park, which is renowned for its research and development capabilities.

MIRA has also been successful in securing an HCA Local Infrastructure Fund (LIF) equity deal. This will allow work to begin on key infrastructure projects to enable the expansion of the site to go ahead. The deal represents £12.9m of LIF investment into the technology park.
 
George Gillespie, CEO at MIRA, said: “We are delighted to confirm the expansion of MIRA, which will enable even more companies to take secure space within the (Enterprise) Zone. We are seeing a real demand for secure facilities on-site, and the expansion will allow us to further support companies.
 
“The MIRA Technology Park story is really gaining traction, and we’re also excited to begin the next phase of the development with the build of key infrastructure starting this month. The site has been purposely created to offer global businesses the ideal location for their R&D operations, in what is fast becoming Europe’s No 1 location for transport technology.”  
 
Mr Osborne, said: “The Midlands is already known for its strength in automotive research and development. The MIRA Technology Park is one of the most successful Enterprise Zones in the country, and a huge success for the Local Enterprise Partnerships – having grown over 40% since 2010. To cement the Midlands and MIRA’s position as a world leader in automotive technology, I can announce today that we will extend the Enterprise Zone.
 
“I’m pleased to confirm that growth is set to continue – with Continental, GKN, Haldex and Goodyear all moving into new premises on site.”
 
Bo Annvik, President and CEO, Haldex, said: “Our new UK R&D centre highlights Haldex’s continued strategic intention of providing innovative product solutions, and is a key step in supporting our development that will benefit both Haldex and our customers.

“At MIRA Technology Park we will develop global platform designs for advanced vehicle braking and stability solutions to the commercial vehicle industry. The new facility is housing a fully equipped state of the art design and simulation centre, full validation laboratory with integrated electromagnetic compatibility (EMC) facilities and a series of garage workshops housing multiple development vehicles. This complete facility integration will provide a unique level of interchange between our teams and will allow shorter development cycles and improve our responsiveness to market needs.”

Since development began at MIRA Technology Park, a total of 354 jobs have been created. The aim is to create up to 2,000 high technology jobs at the technology park and a further 3,000 indirect jobs in the Midlands supply chain by 2020.

Other key steps announced include the development of a major new university in Hereford. The Chancellor has asked Universities Minister Greg Clark to work with the Hereford team on the project.

Part of the investment will also go towards creating a modern, interconnected transport network for the UK centred on the Midlands. IT will begin with work to upgrade the M1 and M5 to four lanes in the summer of 2015, with subsequent plans including the case for electrifying the main rail lines between Bristol and Birmingham and Derby and Birmingham.

Elsewhere, Birmingham Curzon Urban Regeneration Company will meet in March for the first time, and will produce a dedicated HS2 Growth Strategy by April 30, setting out the jobs and growth that HS2 will unlock.

The new company will lead the development of over 140 hectares of land around Curzon Street where the new HS2 station will be located. The redevelopment could create 14,000 jobs, 600,000m² of new employment floorspace and 4,000 homes; together contributing up to £1.3bn a year to the local economy.

Similarly, Solihull will also produce by April 30, a HS2 Growth Strategy for the new HS2 Interchange Station near the NEC and Birmingham Airport.

Work will also continue on the development of the headquarters for the new National College for High Speed Rail, which will be located at Birmingham Science Park (with another site in Doncaster). The college is expected to create apprenticeship opportunities on top of the 2,000 already expected to be created by high speed rail company, HS2 Ltd.

Andy Street, chairman of the Greater Birmingham & Solihull LEP, broadly welcomed the plans.

He said the High Speed Rail Investment Summit was especially welcome as it would allow stakeholders to showcase all of the regeneration and supply-chain opportunities offered by HS2 in one place, thereby maximizing the benefits of the high speed network.