Rishi Sunak, who visited the UK for the G7 Summit in July, announced that the UK would benefit from an additional private investment of almost PS18bn from Japan.
The prime minister, speaking from Tokyo said that the pledges were a “massive show of confidence” for the British economy. He also stated that the pledges will “create hundreds good-paying jobs”.
He painted a positive outlook for the nation’s finances but acknowledged ‘concerns’ within the auto industry after warnings about an looming Brexit deadline.
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Speaking to journalists on the JS Izumo aircraft carriers, Mr Sunak stated: “This is something that auto manufacturers in Europe have raised, and not just the UK.”
“And because of that, we’re engaged in a dialog with the EU on how we could address these concerns when it comes auto manufacturing more broadly.”
The announcement comes before the PM hosts a reception for business leaders in the Japanese capital, on Thursday. He is hoping to strengthen ties.
He is expected to meet with the bosses of Nissan and Toshiba, as well representatives from UK companies Octopus Energy, and Mott MacDonald.
Nissan has warned about the cost of producing electric cars at Sunderland due to high energy prices and inflation.
Stellantis, the parent company of Vauxhall, said on Tuesday it would not be able to meet its commitment to produce electric vehicles in the UK unless the EU trade agreement is changed as the deadline for tariffs approaches.
Concerning worries about UK battery production capacity Mr Sunak stated: “Nissan has invested a million pounds in battery manufacturing capabilities in the North East.”
I’ll talk to the Nissan CEO later and other Japanese business leaders about investment in the UK.
Downing Street announced that the PS17,7 billion in new investments into businesses and projects will drive innovation and create high-skilled employment.
The investment will come from companies such as property firms Mitsubishi Estate and Mitsui Fudosan. Trading house Marubeni and Kawasaki Heavy Industries are also expected to invest.
Number 10 reported that the Marubeni trading company intends to spend around PS10bn on green and offshore wind projects in Wales, Scotland and Wales to boost them.
Sumitomo Corporation also announced a PS4bn expansion to UK offshore wind farms off Suffolk and Norfolk.
Money will be sent back to the UK by companies based there, like Octopus and Mott McDonald.
The prime minister stated that “These new investment are a massive expression of confidence from top Japanese firms in the UK’s dynamic economy.”
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Mr Sunak said that even stronger ties would be formed after the UK joined a Pacific trading block. He added, “the sky’s the limit.”
In early 2018, it was announced the UK would be joining the bloc. The bloc consists of Australia, New Zealand and Canada as well as Chile, Japan, and Chile.
Shigeyuki goto, CPTPP Minister in Japan, will personally thank the Prime Minister for Japan’s strong support of the UK’s membership today.
During Mr Sunak’s visit to the G7 Summit in Hiroshima, he will also discuss Ukraine as well as the Indo-Pacific.
Masumi Kasinoki, CEO of Marubeni Corporation said: “We’re thrilled to have formed a robust partnership, and we look forward to working with the UK Government to unleash an investment surge into the nation’s clean energy transformation.
This initiative not only reinforces Marubeni’s role as a global participant in the march towards a more sustainable future, but also signifies Marubeni’s commitment to the UK’s energy transformation. We are at the beginning of a new energy revolution and partnerships like these will ensure our success.