Leading Japanese businesses have committed to invest almost £18 billion in businesses and projects across the UK, generating growth in key sectors, creating high-skilled jobs and driving technology innovation.
The announcement comes as the Prime Minister prepares to host a business reception in Tokyo today [Thursday 18th], where he will welcome the strength of the UK and Japan’s economic relationship and set out the opportunities to go further.
Japan is already our 5th largest investor with £92 billion invested in the UK, and our trade in goods and services was worth £27.7 billion last year - which is likely to be boosted further when the UK joins the regional CPTPP trade bloc. The Prime Minister will thank Japanese CPTPP Minister Goto in person today for Japan’s strong support for the UK’s membership.
The new investments include funding for offshore wind, low carbon hydrogen and other clean energy projects from Marubeni. The leading Japanese trading house has announced its intention to sign an MoU with the government which envisages approximately £10 billion of investment in the UK with its partners over the next 10 years – including in offshore wind in Scotland and green hydrogen projects in Wales and Scotland.
The company is already supporting 500 UK jobs through its subsidiary SmartestEnergy Limited and will collaborate with government to create a substantial number of new green jobs in the UK.
Mitsubishi Estate and Mitsui Fudosan, two of the largest real estate companies in Japan, are also confirming plans to invest £3.5 billion in the UK today. The planned projects will build affordable housing, high quality office space and life-science laboratory in London, which is expected to support thousands of jobs and help to revitalise areas of the capital.
Sumitomo Corporation intends to expand its UK offshore wind projects, leading to a total investment of £4 billion in projects off the coasts of Suffolk and Norfolk alongside its partners. The major investment further solidifies the UK’s status as a clean energy pioneer and supports Government’s ambition to install 50GW of offshore wind capacity by 2030.
Sumitomo Electric Industries has also announced its decision to build a strategically important high voltage cable manufacturing plant in the Scottish Highlands, bringing more than £200m in investment and creating 150 highly skilled green jobs. This investment will help the UK build resilient supply chains for critical infrastructure such as offshore wind projects and support UK developers to enhance their contribution to UK growth.
The new investment will support growth in some of the UK’s most cutting-edge industries. Toshiba will be expanding operations at their Cambridge Laboratory, for example, which is designing and delivering advanced quantum-safe cryptographic communication solutions - creating more than 30 new jobs initially and investing in excess of £20 million in new technology development.
Prime Minister Rishi Sunak said:
These new investments are a massive vote of confidence in the UK’s dynamic economy, from some of Japan’s top firms.
Working with the Government and British industry they will create the kind of high-quality, reliable jobs and transformative local investment we are delivering around the country.
It’s great to also see leading UK businesses seizing the huge opportunities for growth and collaboration in Japan. As we grow our trade ties further and join the huge regional CPTPP trade bloc, the sky’s the limit for British and Japanese businesses and entrepreneurs.