Scottish Government reaches out to Japanese as investment from the country hits record high
FIONA HYSLOP met with Japanese investors today (13 February) in a bid to develop greater trade ties and two way foreign investment amid the uncertainty caused by the UK’s exit of the European Union.
Her meeting in Tokyo comes at the same time as news showing that Japanese firms have an invested record extra turnover of £187m in the Scottish economy.
The Scottish secretary for external affairs Fiona Hyslop told Japanese investors that “Scotland is ripe for more investment and remains open for business”.
“At almost £1.5bn, direct investment in Scotland from Japan is at a record high with excellent prospects to grow even further.” Fiona Hyslop
Speaking earlier today at an embassy address to Japanese businesses Hyslop said: “With substantial natural resources, one of the most highly educated workforces in Europe, a long-standing reputation for innovation and world-renowned universities, Scotland is a highly attractive place to do business for Japanese companies.
“While in Tokyo and Nagasaki this week, I will meet current and potential investors to reassure them that while the EU referendum result has cast a cloud of uncertainty over trading relationships, Scotland remains a great place to invest.
“At almost £1.5bn, direct investment in Scotland from Japan is at a record high with excellent prospects to grow even further.”
Earlier in the day, Hyslop visited Kyowa Hakko Kirin, a biotech research and development firm who bought and expanded the ProStrakan site in Galashiels in 2011.
Their expansion has meant that the number of their employees in Scotland will rise from 150 to 200 over the next five years. They have been at pains to stress that these are high value and high skill jobs added to the Scottish economy.
The secretary will also meet representatives of Mitsubishi Electric and Reprocell, car manufacturing and engineering energy firms that have both recently expanded operations in Scotland.
Between the years of 2012 and 2014, six projects were secured by Scottish businesses in Japan creating 390 jobs.
A spokesperson for Mitsubishi central communications office told CommonSpace: “Mitsubishi welcomes deepening trade ties between nations and markets. Certainty is always welcomed and we welcome any moves to develop opportunities for greater investment. Our investments in Scotland are highly valued and we have the highest confidence in the stability of the relationship between Mitsubishi and the Scottish economy.”
During a speech, Fiona Hyslop emphasised that Scotland still had its highest level of foreign direct investment projects on record despite the UK’s vote to leave the EU.
Currently, around 85 Japanese-registered businesses operate in Scotland with a collective turnover of £1.489bn, employing over 5400 people, making Japan Scotland’s 7th biggest source of direct investment.
Half of all Japanese investment in the EU goes to the UK including companies such as Honda, Nissan, Mitsubishi, Nomura and Daiwa. However, in the past seven years here has been a steady growth in trade between Japan and Scotland with interest in Scottish salmon, whisky and other seafood goods.
Last year, Japanese ministers expressed “astonishment and concern” at the decision in the vote to take the UK out of the EU. The EU is an important factor for Japanese companies who already have plants and research labs in Scotland and the wider UK.
“Our investments in Scotland are highly valued and we have the highest confidence in the stability of the relationship between Mitsubishi and the Scottish economy.” Mitsubishi Electric
Exports of Scottish fish and seafood to Japan have grown since 2007, witnessing export increase of 180 per cent.
In constrast, the value of Scotland’s direct exports to Japan from 2014 to 2015 were worth £295m which Hyslop will be looking to increase long term during her trip.
Between the years of 2012 and 2014, six projects were secured by Scottish businesses in Japan creating 390 jobs.
Fiona Hyslop and the Scottish delegation will be in Japan for the remainder of the week.
Picture courtesy of The Scottish Government
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