Industry News-North East Named UK's First Specialist Region For Low Carbon Vehicles

Prime Minister Gordon Brown and Business Secretary Lord Mandelson today welcomed Nissan’s intention to invest more than £200m over the next five years in a new battery factory in Sunderland.

The rechargeable lithium-ion battery plant, Nissan’s European Centre of Excellence for Battery Manufacturing, comes as the Prime Minister announced the region would become the UK’s first Low Carbon Economic Area specialising in ultra-low carbon vehicles.

The battery investment makes Nissan Sunderland a good contender for manufacture of the group’s new “greener” electric vehicles.

Prime Minister Gordon Brown said:

“Nissan’s investment in a new battery plant and its hope to start producing electric vehicles here in Sunderland is great news for the local economy, creating up to 350 direct jobs and creating and safeguarding hundreds more in the associated supply chain.

“This investment is also hugely significant as we embark on Building Britain’s Future, our plan for recovery and beyond powered by low carbon, high technology industries, products and services.

“Sunderland could now be a strong contender to produce electric vehicles for Nissan in Europe, and we will continue to work with Nissan to ensure this happens.”

The Government is working with Nissan on supporting this investment by offering grants and loan guarantees, including support through the Automotive Assistance Programme.

Low Carbon Economic Areas (LCEAs) were introduced in the Government’s Low Carbon Industrial Strategy last week. They aim to draw together national, local and regional agencies to focus support on accelerating the growth of low carbon industries, skills base and supply chain.

The North East LCEA, led by One North East, will focus on supporting the transformation of automotive industry, providing support for innovation and demonstration, skills training and clustering of manufacturing.

Business Secretary Peter Mandelson said:

“The North East has distinguished itself as the first specialised region for ultra-low carbon vehicles. This is good news not just for the North East, but for the whole of the UK, helping to attract foreign investment and securing UK’s place as a global leader in high-tech manufacturing and automotive industries.

“The collaboration between local businesses, universities and colleges will create a hub of expertise to boost innovation and accelerate business growth in this important area of ‘green’ industry.”

As part of the Low Carbon Economic Area, the Government intends to establish:

·A training centre - the first to specialise in the manufacture and maintenance of ultra-low carbon vehicles. Government is in discussions with national companies such as the AA about how the centre can help update skills to keep up with the growing use of ultra-low carbon vehicles.

·A Research & Development Centre - serving as a home for research from all five local universities bringing together fundamental and applied research in ultra-low carbon vehicle technology and use.

·An open access test track to trial the use of new technologies.

·One NorthEast is also looking at options to reopen all or part of the Leamside Rail Line, which would help improve access to the Port of Tyne to boost imports and exports in the region.

·Over the next two years 750 charging points will be installed in a range of locations in the NorthEast, including supermarkets, shopping centres, public transport installations, hospitals, universities, public buildings and domestic and business premises. The first points are currently being installed in Newcastle and Gateshead.

One North East chairman Margaret Fay said:

“One North East welcomes this visionary announcement. It confirms the North East of England’s growing role at the forefront of the low-carbon economy and cements the region’s position as a leading location for electric vehicle development in Europe.

“The North East’s Low Carbon Economic Area will be extremely important for the future of the automotive industry in the region and will enable One North East to attract further investment related to electric vehicles and their infrastructure.”

Industry News-Strategy For Low Carbon Businesses to Benefit British Jobs

The Low Carbon Industrial Strategy, launched today, sets out the action the Government is taking to ensure that British businesses and workers are equipped to maximise the economic opportunities and minimise the costs of the transition to a low carbon economy.

The strategy follows from Building Britain’s Future: New Industry, New Jobs, and sets out how the Government aims to ensure that the transition to low carbon is a source of quality jobs and business savings in Britain: from our rapidly developing civil nuclear industry and renewable energy sector, to energy saving in our smallest SMEs.

The strategy identifies a range of low carbon sectors with potential for job creation and growth. These include: wave and tidal power; civil nuclear power;offshore wind; and ultra-low carbon vehicles. It also sets out the Government’s strategy for removing barriers that are blocking the development of Britain’s full potential in these areas.

The strategy recognises that local and regional strengths offer a good foundation to realise future economic benefits for Britain. The first Low Carbon Economic Area in the South West of England will create a business and skills focus on marine energy demonstration, servicing and manufacture.

The strategy also sets out the first investments from the £405 million for low carbon industries and advanced green manufacturing announced at Budget 2009.

Key investments include:

•Up to £60 million to capitalise on Britain’s wave and tidal sector strengths, including investment in Wave Hub – the development of a significant demonstration and testing facility off the Cornish coast – and other funding to make the South West Britain’s first Low Carbon Economic Area.

•Up to £15 million capital investment in order to establish a Nuclear Advanced Manufacturing Research Centre consisting of a consortium of manufacturers from the UK nuclear supply chain and universities.

•A £4 million expansion of the Manufacturing Advisory Service, to provide more specialist advice to manufacturers on competing for low carbon opportunities,
including support for suppliers for the civil nuclear industry.

•Up to £10 million for the accelerated deployment of electric vehicle charging infrastructure.

•Up to £120 million to support the development of a British based offshore wind industry.

The strategy also recognises that there are challenges for the workforce particularly for those in high carbon industries. The Government will create a new Forum for a Just Transition to advise on how to address the issues, with representatives from Central Government, national, local and regional bodies, Trade Unions, business organisations, and third sector bodies.

Announcing the strategy Business Secretary Peter Mandelson said:

“There is no high carbon future. But if the transition to low carbon is inevitable, what is not inevitable is that we use the transition as a chance to develop new jobs, new industries here in Britain. This strategy builds on the New Industry New Jobs approach, outlining the strategic role the government will play alongside the private sector, to make the most of the potential benefits for innovation, growth and job creation in the UK.

“Low carbon and environmental goods and services are already worth £3 trillion to the global economy, and in the UK employ nearly 900,000 directly and through the supply chain. With the sector set to grow by over 4% per annum over the next six years we must do all we can to support British businesses and workers in benefitting. Today we are announcing the first investments under the £405M funding allocated in the budget. We must ensure that we equip businesses and the workforce with the capabilities and skills to take advantage of the potential benefits as the world moves towards a low carbon future.”

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