Foreign investment projects rise in Wales
WALES has seen a rise in foreign direct investment (FDI) projects, although the overall number of new jobs created and safeguarded has fallen.
For the year 2019-20 (to March end), Wales attracted 62 projects, compared to 51 a year earlier.
This includes new projects coming into Wales, expansions by existing foreign-owned businesses and those through merger and acquisition activity.
While the number of new jobs created by the projects rose from 2,314 to 2,738, the number of jobs safeguarded fell from 1,390 to 455.
Overall the number of jobs created and safeguarded was 3,193, compared to 3,704 a year earlier.
Of the new projects in Wales in 2019-20, 42 (68%) were expansions by existing firms and 17 (27%) new projects. Three projects were the results of acquisitions.
The investments were spread across Wales, with 54% in the south-east, 24% in north Wales and 23% in mid and south-west Wales.
Of the projects, 24 came from within the EU, 18 from North America and 20 from the rest of the world. In addition, 73 investments were secured from companies headquartered in the UK, creating 2,896 new jobs.
For the UK as whole there were 1,852 FDI projects, a rise of 4% on the 1,782 a year earlier.
The number of new jobs created was down 3% from 57,625 a year earlier to 56,117. However, the number of jobs safeguarded rose 29% to 9,021.
Earlier this year the Welsh Government launched its new international strategy, identifying the sectors of compound semiconductors, cyber security and creative industries for targeted support to help maximise their potential for export and inward investment growth.
Minister for International Relations Eluned Morgan said: “Increasing levels of inward investment to grow the Welsh economy is a key ambition of our international strategy and these figures are testament to the work we’re doing to promote Wales as a place to invest, with around 75% of investments receiving Welsh Government support.
“I am particularly pleased to see a significant proportion of new investments in the cyber security and compound semiconductor sectors, two areas we have chosen to showcase as Welsh centres of excellence in our international strategy.”
The minister said that compared to other nations and regions of the UK, Wales has secured one of the highest new jobs-per-project ratios.
She added: “Wales has secured an average of 44 new jobs per investment, the second-highest ratio among the UK nations and regions, demonstrating our commitment to supporting quality investments that create significant employment opportunities.”