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Foreign investment to create new jobs in UK automotive sector

ABR Staff Writer Published 05 July 2018

The UK’s automotive sector is to benefit from £130m foreign direct investment (FDI) that will create nearly 500 new jobs.

A statement from the Department for International Trade revealed three companies decided to open new automotive-associated facilities in the UK this month.

Canadian firm Magna International is opening a new aluminium-casting factory in Telford to support Jaguar Land Rover, which is expected to create 295 jobs when at full capacity.

Austria-based Polytec have invested £18m in a project to develop a new facility in Telford, which will build bumpers and accessories for car makers, including Jaguar Land Rover, and create 100 jobs.

Spain’s Gonavrri has commited to create 60 jobs at division Steel & Alloy’s new steel processing facility in Oldbury, which will create 60 jobs.

Stuart said: “The opening of these 4 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.”

The UK government claims that the new openings are a further confirmation that the country’s automotive sector remains one of the strongest of its type in the world, offering the best value added per employee in car manufacturing of any European country, with competitive labour costs and low corporation tax.

The automotive sector which exported £41.3bn of products, including 1,340 000 vehicles, in 2017, up from £37.8m on 2016 - to more than 160 international markets.

According to the Society of Motor Manufacturers and Traders, over 137,000 new vehicles rolled off the UK’s production line this May.

A report from EY has revealed the UK remains the top destination for FDI in Europe in 2017 to 2018.

Image: Foreign direct investment in the UK's automotive sector creates nearly 500 jobs with investment from 4 separate companies. Photo: courtesy of Crown copyright.