Inward investment in Wales is approaching a 25-year high with 79 foreign companies either moving into the country last year or expanding an established foothold, giving a boost to the commercial property market.
The UK Trade and Investment (UKTI) figures came within hours of China’s biggest television manufacturer announcing it was setting up its European manufacturing headquarters at Port Talbot. Tongfang (THTF) said its £1.6m Kenfig Industrial Estate plant would initially employ around 110 people.
Welcoming the 2013-14 returns, the country’s First Minister Carwyn Jones (pictured) said the 79 “direct inward investment projects” was a record result for the last 24 years and would create or safe-guard almost 10,500 jobs.
“Remember, our population is only 4.8 per cent of the UK,” added Jones, “so I’m very happy that all the effort we’ve put into selling Wales abroad is starting to work.”
He stressed that the days when companies invested “because Wales was a cheap place” have long gone.
“We now attract investment into this country on the basis of the fact we’ve got the skills, not because wage rates are lower,” said Jones.
“We keep being criticised by the opposition parties for going to countries to get investment — but this is what happens when you go there and you fight for Wales.”
The Welsh government has been wooing the Chinese for at least two years. “China is a major market with massive inward investment potential and a market Wales has been targeting diligently through business and cultural visits, trade missions, business links and trading agreements,” he added.
In Tongfang’s case it paid off when the electronics giant decided to open its first European production facility in Wales, employing 45 local people to set up assembly lines before full scale recruitment begins this October.
THTF is part of Tongfang Global, which has its headquarters in Hong Kong and employs 1,200 people at northern China’s largest TV manufacturing facility. Earlier this year the Welsh government awarded it £600,000 toward establishing the Port Talbot plant.
Philip Jones is director of THTF UK. “Tongfang Global already supplies a number of key retailers in the UK from China and having this facility in Wales means we can offer our customers a much better service with shorter lead times,” he said.
In a separate announcement 68 jobs are being created in Cwnbran by a company which helps other firms procure goods and services.
London-based Proxima — which claims to be the largest procurement services provider in Europe — is boosting its 100-strong Torfaen workforce after receiving financial backing from the Welsh government. “A large percentage of this expansion is due to the calibre of staff we employ in Wales and their strong track record,” said director, Ian Thompson.
Proxima’s clients include British Airways, Universal Music and the Morrison’s supermarket chain. Its larger Cwnbran staff would now also allow it to target North America.
