Release of UK Trade & Investment Annual Report Announces UK 2005/2006 Foreign Direct Investment Figures

NEW YORK, July 5 /PRNewswire/ -- The New York office of UK Trade & Investment (UKTI) today announced the release of the UK Annual Investment Report for the 2005/2006 financial year. Records of foreign direct investment flows have been officially monitored since 1970, making the UK the top recipient of US foreign direct investment in Europe for 36 consecutive years, or since this data has been recorded.

Globally, the UK recorded its highest number of inward investment projects to date, according to figures published today by UK Trade & Investment's London office. The record 1,220 projects -- including 446 from the US, bring new employment to every region of the UK, and range from research and development projects to expansions of financial services firms.

UK Trade and Industry Secretary Alistair Darling said:

"Inward investment is essential to the UK economy. It creates and underpins British jobs, as well as revitalizing local and regional economies. These figures are proof that the UK is a great place to do business and the best base from which to compete internationally. Increasingly the UK is seen as the international centre for business, enabling companies to achieve growth by accessing world markets from the UK.

"For more than two decades the UK has been the number one location in Europe for inward investment. But we face a real challenge in the 21st century if the UK is to maintain its position as market leader in Europe, against increasing competition -- from traditional rivals such as France, to new EU member states in Central and Eastern Europe. There is also increasing competition from the emerging giants of India and China.

"UK Trade & Investment's new strategy to be announced soon will outline how the government will tackle these challenges."

  Key figures from today's report are:

  -- 446 new investment projects from the US
  -- Total projects up from 1,066 (2004/05) to 1,220
  -- Total direct new jobs are down by 14 percent in the last year to 34,077
  -- However, total associated jobs are up by 19 percent in the last year to
     89,866, 34,077 of which were new jobs and 55,789 which were safeguarded
     jobs
  -- Research and development projects are up by 62 percent to 164 projects
  -- Pharmaceuticals and biotechnology are up 19 percent to 98 projects
  -- Software projects are up 26 percent to 150 and IT and e-commerce
     projects are up 12 percent to 134
  -- 26 percent of projects were expansions by existing investors, which
     generated nearly 65 percent of all the new jobs created
  -- Mergers/acquisitions and joint ventures were up 42 percent on last
     year.

  UK Foreign Secretary Margaret Beckett said:

"This report demonstrates that the UK continues to be the popular choice of location for foreign direct investment in Europe. The number of new jobs created is encouraging and a vital contribution to our continuing prosperity. But in the face of global challenges there can be no room for complacency. We live and work in a truly global economy, where business and investment are ever more mobile, and where there is increasing international competition. Our competitors are raising their game; we must keep raising ours."

UK Minister for Trade and Investment Ian McCartney said:

"These results are excellent news for Britain's economy and for British jobs. We want to attract dynamic companies with a strong potential for growth, meaning we create jobs and ensure that British workers have the skills needed to meet the challenges of a globalized economy. We want to continue to help such companies to come to the UK, to grow in the UK, and indeed to be recognized as UK companies."

Note to Editors: 1. UK Trade & Investment is the Government organization that provides integrated support services for UK companies engaged in overseas trade and foreign businesses focused on the UK as an inward investment location. The principal aim of the Inward Investment Group is to attract, retain and add value to investment by communicating the benefits of the UK as the first choice in Europe for potential investors, and their influencers world-wide. It identifies and approaches potential investors and assists them with all aspects of locating and expanding in the UK. 2. The 'UK Inward Investment 2005/6' report records all inward investment decisions notified to UK Trade & Investment for the financial year 2005/6 by the nine English regional development agencies and the national development agencies in Scotland, Wales and Northern Ireland. It includes new investments, expansions, and acquisitions. Acquisitions were independently validated and verified by the UK development agencies. 3. Copies of the 'UK Inward Investment 2005/6' report are available in a downloadable format from the UK Trade & Investment website http://www.uktradeinvest.gov.uk/ and from the DTI Publications Unit on 0870 1502 500. Inward Investment Success by Country 2005/06 No. of No. of No. of Safeguarded Total No. Country Projects New Jobs Jobs of Jobs Australia 53 1,047 461 1,508 Austria 5 75 309 384 Belgium 9 265 400 665 Bermuda 1 22 13 35 Belize 1 0 0 0 Canada 75 1,938 2,552 4,490 China 27 1,017 1 1,018 Czech Rep 1 0 0 0 Denmark 12 810 43 853 Finland 5 91 0 91 France 59 2,780 1,150 3,930 Germany 67 1,822 1,438 3,260 Greece 1 23 0 23 Hong Kong 6 347 0 347 Iceland 10 253 4 257 India 76 1,449 2,523 3,972 Ireland 44 1,104 1,531 2,635 Israel 13 143 0 143 Italy 22 374 616 990 Japan 84 2,054 29,209 31,263 Korea 15 251 40 291 Luxembourg 2 800 0 800 Malaysia 5 29 80 109 Mexico 1 2 0 2 Middle East 7 33 0 33 Netherlands 30 680 1,610 2,290 New Zealand 16 161 0 161 Norway 28 212 3 215 Poland 2 3 0 3 Russia 3 350 0 350 Saudi Arabia 1 50 135 185 Singapore 5 71 0 71 South Africa 11 219 141 360 Spain 18 200 0 200 Sweden 28 131 2,969 3,100 Switzerland 15 703 469 1,172 Taiwan 7 85 50 135 Turkey 6 39 15 54 UAE 3 13 3 16 USA 446 14,431 10,024 24,455 Totals 1,220 34,077 55,789 89,866 Source: UKTI Database INWARD INVESTMENT SUCCESSES BY PROJECT TYPE 2005/2006 Total No. of Total No. of No. of Total No. Safeguarded Associated Project Type Projects of New Jobs Jobs Jobs Acqusition, Mergers and JV's 375 1,917 37,104 39,021 Expansion 337 22,090 18,290 40,380 New 508 10,070 395 10,465 TOTALS 1,220 34,077 55,789 89,866 Source: UKTI Database INWARD INVESTMENT SUCCESSES BY OPERATIONAL NATURE 2005/2006 Total No. of Total No. of No. of Total No. Safeguarded Associated Operational Nature Projects of New Jobs Jobs Jobs Contact Centers 21 1,948 770 2,718 Distribution 95 2,754 582 3,336 E-commerce 15 188 80 268 HQs 151 3,422 1,273 4,695 Manufacturing 288 9,397 40,501 49,898 R&D 164 4,460 6,314 10,774 Services 486 11,908 6,269 18,177 TOTALS 1,220 34,077 55,789 89,866 Source: UKTI Database About UK Trade & Investment:

UK Trade & Investment is the British Government's international business development agency, supporting companies in the UK doing business internationally and overseas enterprises seeking to establish a market footprint in the UK. The integrated services offered by UK Trade & Investment bring together a network of business sector specialists and support teams in over 200 British embassies and Foreign and Commonwealth Office (FCO) posts overseas, as well as key experts in government departments across the UK.

As a government agency, UK Trade & Investment is uniquely positioned to offer expanding companies access to a growing network of global business advisors and bespoke market entry intelligence and guidance on operational issues. With its government connections, in-depth knowledge of UK regional business, ties to leading institutions, science and technology resources, as well as its global network, UK Trade & Investment is a unique strategic resource for companies that want to operate in the number one business location in Europe. For more information visit: http://www.uktradeinvestusa.com/

  Media contacts:
  Shirar O'Connor-Mugler              Katherine Saunders
  UK Trade & Investment               Hill & Knowlton
  Tel: (212) 745-0420                 Tel: (212) 885-0586
  Shirar.O'Connor@fco.gov.uk          Katherine.Saunders@hillandknowlton.com