Investor confidence boosted with record inward investment

The global economic downturn has failed to dampen Yorkshire and Humber’s position as a leading location for foreign investment, with the latest figures released by Yorkshire Forward today showing the region attracted a record 125 overseas investors in the last 12 months, the highest ever.

Yorkshire Forward and local authority partners were directly involved in over 65% of the investments, creating over 1,270 new jobs, safeguarding an additional 3,683 and attracting over £661 million of private investment.

The United States was the region’s top investor for the second year, followed closely by Japan and firms from across Europe. And despite challenging trading conditions, the Advanced Engineering, Food and Drink and Manufacturing sectors remained the top sectors for investment in the region.

“In a climate where businesses now more than ever, are balancing the need for capital investment against the uncertainties of the global economy, the results endorse the strength of our region as the place to do business” said Theresa Lindsay, Assistant Director of Business at Yorkshire Forward.

“More than half of all inward investment during the past year has come from existing international companies that have a base in our region. These companies are choosing to reinvest in the region and expand their operations, in a highly competitive global market.

“This demonstrates the level of confidence in the Yorkshire and Humber economy and proves our region is the right choice for companies who are not only market seeking, but also efficiency seeking.”

Investments range from Arla Foods, which is investing more than £70m expanding production facilities at its Leeds flagship dairy creating around 100 new jobs, to smaller, high tech investments such as Portuguese owned microelectronics company, Tomorrow Options, a spin out of the University of Porto specialising in the design and manufacture of innovative electronic devices for the healthcare industry.

Tomorrow Options made its first UK investment at the Sheffield Bioincubator – a Yorkshire Forward funded innovation hub designed to encourage growth in the region’s bioscience industry – and created three jobs as part of its drive to grow its UK business arm.

Paulo Ferreira dos Santos, Chief Executive at Tomorrow Options, said: “The Tomorrow Options board made the unanimous decision to open in Sheffield over a number of other UK options based on the wide range of incubator accommodation and support services available in Sheffield; the quality of the universities' research strengths and the company's existing links to the graduation talent within Sheffield Hallam University. Working with Creativesheffield, Yorkshire Forward, The University of Sheffield, DesignFutures, Wake Smith & Tofields and Barber Harrison & Platt reassured the team at Tomorrow Options that investment in Sheffield was the only choice.”

According to the figures South Yorkshire has proved the most popular location for investment, attracting 45% of the total business investments. North Yorkshire and West Yorkshire attracted around 23% each and Humber proved to be the location of choice for around 9% of investors.

Notes to editors:

• Investment made by Yorkshire Forward in FDI activity has created or safeguarded nearly 5,000 jobs, at a cost of around £400 per job, which is significantly less than the average cost per job of over £4,500.
• Every £1 Yorkshire Forward invested in attracting Foreign Direct Investment is forecast to generate £320 of private sector investment.

Yorkshire Forward 

• Yorkshire Forward is the Regional Development Agency behind the economic regeneration of Yorkshire and Humber. It aims to make a positive difference by investing in jobs, improving towns and cities, and in supporting businesses throughout the region.
• Yorkshire Forward’s investment across the region is maximised by attracting European Regional Development Funding from the Objective One and Two programmes.
• For further information, images or to arrange an interview, please contact Victoria Pourzand, Senior Press Officer on 0113 3949904 or on 07736181063 or email victoria.pourzand@yorkshire-forward.com