Asian companies target UK as springboard for global growth as investment hits record level

(Hong Kong, 17 June, 2009) - Foreign investment in the UK has hit a record high as more companies than ever before used it as a springboard for global growth, defying the world economic downturn. Four Asia Pacific countries (India, Japan, Australia and China) were among the top 10 investment sources.

Highlighting the UK's position as an investment multiplier and the leading investment destination in Europe, companies from around the world invested in 1744 FDI projects during the 2008-9 financial year to March – an 11 percent increase and the fifth successive year of growth.

The record numbers have been achieved in a year when the latest United Nations Conference on Trade and Development (UNCTAD) figures confirmed the UK to be ahead of most global competition with US$1.348 billion of stock received and a market share of 8.9 percent. It is second globally only to the US.

"Companies from markets across Asia Pacific increasingly see the UK as an ideal hub for their international ambitions," said the Head of UK Trade & Investment's Asia Pacific Regional Team, Tony Collingridge. "The UK continues to be a leading destination for foreign investment because companies going global recognise it has the best environment for business. It is a gateway to international connections including a huge market in Europe of 455 million consumers. The UK's world-class creativity and innovation fused with its commitment to R&D are also major attractions."

In Asia Pacific, investment from India increased significantly with a 44 percent increase to 108 projects. Elsewhere in the region, investment from other countries among the global top 10 sources came from Japan (81 projects), Australia (65) and China (59).

Key projects in the UK from Asia Pacific included:

• Investments by leading Indian life sciences companies, which are going global. Among these were the establishment of a European headquarters by Biocon and Dr. Reddy’s acquired a clinical trials unit.
  
• Japanese companies opened world-class facilities to harness UK innovation together with Japanese R&D. Panasonic opened a new European design centre in London while Hitachi is establishing assembly lines after winning a contract to supply intercity passenger trains. A wind farm operator, Eurus Energy (a joint venture between Tokyo Electric Power Company and Toyota Tsusho Corporation), has invested in a large wind farm in the north west of England.
  
• Important investments were also made by Chinese companies. Huawei, the rapidly expanding telecommunications hardware company, grew its UK business further through the addition of a marketing operation. Huawei also forged R&D partnerships with four UK universities. China Construction Bank, one of China's largest financial service providers, established a London subsidiary.
  
• High-quality investment from South Korea, including biotechnology company Sewon Cellontech, which launched R&D work in the East of England, and handheld mobile computer manufacturer M3 Mobile set up its European test bed from a base in London for delivering mobile solutions for PDAs.
  
• A wide range of investments from elsewhere in the region. Singapore’s ComfortDelGro acquired a new taxi company in Liverpool, while Icicle, a Hong Kong printing management company, established its European headquarters in London. Air Asia, a fast-growing Malaysian airline, decided to also locate its European headquarters in the UK.

ICT continued to be a strong sector for investment from Taiwan, including LCD screen manufacturer Hannstar setting up its European sales and marketing office. Among a number of companies from Australia was award winning Bligh Voller Nield Architecture, which set up its first office in the UK.

The UK maintained its position as the leading destination for R&D in Europe during 2008/9 with a high level of investment (202 projects) despite the challenging economic environment. Reflecting the UK’s status as home to some of the most advanced engineering technologies in the world, investments in the advanced engineering sector rose 15 percent (211 projects). And the UK continues to be a leading centre for headquarters operations, with a 14 percent increase in investments (251 projects).

Despite speculation that manufacturing is no longer a strength for the UK, the sector experienced an 18 percent increase (327 projects). "Manufacturing of low cost components and products has generally moved elsewhere but high value-added and technology-intensive manufacturing means that the UK continues to be one of the world’s strongest manufacturing economies," said Mr Collingridge.

"In spite of the impact of the global financial crisis, these strong results show companies have not abandoned international expansion plans. The UK continues to be considered a strategically vital location for building global businesses across a hugely diverse range of business sectors and activities."

For further information, please contact:

Esther Au Yong
British High Commission Singapore
Tel: (65) 9739 4503
Email: Esther.AuYong@fco.gov.uk

Michael Png
UK Trade & Investment
British High Commission Singapore
Tel: (65) 6424 4383
Email: Michael.Png@fco.gov.uk

Or visit: www.uktradeinvest.gov.uk

Notes for Editors

The 2008-09 Annual Inward Investment report is available at http://www.ukinvest.gov.uk/investmentreport08/09

About UK Trade & Investment (UKTI):
UK Trade & Investment is the UK Government's international business development organisation, supporting businesses seeking to establish in the UK and helping UK companies grow internationally. The services offered by UK Trade & Investment bring together a network of business sector specialists and support teams across England and in British diplomatic posts in some 100 markets all around the world. UK Trade & Investment works with a wide range of partner organisations in the UK, including other Government departments, RDAs and the Devolved Administrations, Business Links, Chambers of Commerce and trade associations. 

For more information, visit the web site at www.uktradeinvest.gov.uk Visit the online newsroom at http://www.newsroom.uktradeinvest.gov.uk.   

Back to newsroom

Back to top