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The Stockton Story: a Japanese Investment Promotion Case Study

Located in the North East of England, Stockton-on-Tees Borough Council is now marketing itself as a world-class business location which offers a great place to live, work and visit. It is home to a number of highly successful Japanese-owned businesses that have enjoyed what they consider a warm welcome and strong level of support from the area’s local government.

Stockton believes it provides a fantastic environment for any business seeking to grow or develop in the UK; this is shown by a diverse business base featuring an array of global businesses that have chosen to locate and invest. The welcome long-standing success of Japanese businesses investing in Stockton and the strong relationships forged with local government are key reasons why the Borough of Stockton wishes to be considered as a location for further Japanese businesses and develop links with the Japanese business community.

The tradition of manufacturing excellence and innovation continues on in Stockton to the present day with Japanese-owned companies at the vanguard of business success.

Stockton Mayor welcomes a senior Nifco delegation

Stockton Mayor welcomes a senior Nifco delegation

Nifco

Nifco UK Ltd, based in Stockton-on-Tees, is one of the North East region’s best-known manufacturers. An award-winning business, Nifco produces functional plastic components that are used in the engines and interiors of cars made by Nissan, Ford, Jaguar Land Rover, Honda and Toyota. The company has enjoyed a significant period of growth, having grown from being a £300,000 turnover business to one that is projecting a rise in revenue to £75m by 2016.

Following a major vote of confidence from the manufacturer’s Japanese parent company Nifco Inc., combined with significant government support, the manufacturer was able to move to a new 130,000 sq ft manufacturing facility and headquarters in 2011. This investment project secured 158 jobs and created a further 128, a huge boost for the Stockton economy, the facility being officially opened by HRH the Duke of York Prince Andrew.

After enjoying great success supported by its move to new premises, further support was awarded, which has assisted Nifco with the creation of a second £12.8m, 61,451 sq ft facility at the same location. The second factory unit increased Nifco UK’s manufacturing capacity and has added a new dimension to the business’ credentials, introducing a Research and Development facility that has led to staff numbers increasing on-site to more than 500, with plans for a third new manufacturing development at an advanced stage.

A key example of Nifco UK’s recent growth was evidenced in 2015, with the announcement that it secured a contract that could be worth as much as £50m with automotive giant Ford.

Nifco employee Satoru Nobu, resident in the UK for 20 years and now living in a new suburb of Stockton, says that “Japanese culture is becoming more understood thanks to the internet and it is helping to make it easier to settle and that it is easy to form relationships, regardless of where you are from.”

Fujifilm Diosynth Biotechnologies

The company is engaged in the development and manufacture of innovative biotechnology-based medicines in the UK at its Stockton-on-Tees site.

Fujifilm employs 500+ at its site in Stockton-on-Tees. The company has continued to invest in the site through the addition of new manufacturing and research facilities and is part-owned by Mitsubishi.

The company’s biologics business is one of the world’s leading contract development and manufacturers of biologics for human healthcare products, with a focus on microbial- and mammalian-derived biologics. There are plans to expand its services in mammalian cell line development and process development.

Kenji Orihashi of Mitsubishi, who spent two years working in Stockton, highlighted many positive aspects of living and working in the region, commenting that local people are friendly and easy to communicate with, the area has many positive environmental attributes with leisure attractions for families and excellent transport links. Kenji also highlighted the social links enjoyed between Japanese nationals employed by the different Japanese companies in the wider area such as Nissan, Komatsu and Hitachi.

HRH Duke of York officially opens Nifco’s UK HQ in Stockton

HRH Duke of York officially opens Nifco’s UK HQ in Stockton

Lucite International (Mitsubishi Rayon Group)

The company is a global leader in the design, development and manufacture of acrylic-based products. It was created from the acrylic businesses of ICI and DuPont and was acquired by Mitsubishi Rayon Co Ltd in 2009.

Lucite is the world’s largest supplier of MMA (methacrylate-based monomer), the essential building block for all acrylics. All the company’s products and brands are based on MMA and are designed, manufactured and sold from its operations in EMEA, the Americas and Asia Pacific. Branded products include Perspex® and Lucite®.

The Cassel site in Billingham, which employs 250, is the largest within the company and manufactures both the key raw materials for further processing within the company and finished product for sale to external market customers. The company global R&D HQ is based at Wilton, also on Teesside.

A quarter of Lucite’s 300-strong workforce on Teesside is now made up of people under the age of 30, as a result of the company’s policy to employ sponsored apprentices to help the company to bridge the skills and age gap.

Fujifilm R&D taking place in Stockton

Fujifilm R&D taking place in Stockton

Hitachi

Close to Stockton-on-Tees, in neighbouring County Durham, Hitachi are currently investing significant sums in a new high tech manufacturing facility.  The new manufacturing and assembly plant in Newton Aycliffe, County Durham is being developed to support the DfT-led Intercity Express Programme and future Hitachi Rail projects. The decision to manufacture and assemble rolling stock at these premises is a fundamental building block in Hitachi Rail Europe’s strategy for growth.

These case studies are examples of the Japanese companies operating in the area – in the wider North East of England there are over 50 Japanese companies in total, with further examples such as Nissan, Komatsu, and Fujitsu.  For generations there have been strong commercial links between Japan and the North East, this led to the formation of the North East Japanese Women’s Association (NEJWA), which works to welcome new Japanese people to the North East and also to share Japanese culture in the wider community.

Why Stockton?

  • Stockton-on-Tees is home to Durham University’s Queens Campus.  Located in a striking waterfront setting, the contemporary Queen’s Campus is purpose-built to deliver our world-class courses.  Durham University itself is often ranked within the top 100 Universities in the world.
  • Durham University has approximately 80 students from Japan currently studying, with a further network of around 500 alumni in Japan (including an on-going PhD research project on the North East’s Japanese investment profile)
  • Durham University is also home to the Oriental Museum, the only museum in the North of England devoted entirely to the art and archaeology of the great cultures of Asia
  • The University of Teesside is also located within the Tees Valley, a modern university with a strong reputation for business engagement

This case study (also published in Japanese) was developed and supplied by Stockton on Tees Borough Council’s Economic Growth Team.  Visit www.stockton.gov.uk to find out more about visiting the borough or to speak with a member of the team about investment opportunities.


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