JLGC Director Yuichiro Hanyu and Researcher Hannah Waterson made a visit to the North East this March to see first-hand the impact of Japanese investment in the region and the associated links that have developed between local authorities and communities in both countries.
We were privileged to see behind the scenes at several of the region’s largest Japanese investors, starting with NSK bearings in Peterlee, County Durham, the first company to locate in the region in the 1970s. We then moved on to Nissan, which has been based in Sunderland since 1984, and now directly employs over 7000 people. As well as receiving a factory tour, we were able to try out the new electric Leaf model. At the automotive parts manufacturer, Calsonic Kansei, we observed how the Japanese process of kaizen (improvement) had been incorporated into the plant, with all staff contributing to the continuous improvement of systems. In addition to the provision of jobs in the area, these companies provide training opportunities for young local people and stimulate further investment in new technologies. They are also involved in community-based CSR activities and engage with local authorities and schools to generate interest in manufacturing as a career.
While the important role Japanese automotive companies and those in the supply chain have played in creating jobs in the NE region was clear, we also heard about emerging investment sectors in Sunderland. Through Sunderland Software City, the city council provides support to allow software firms to develop and ultimately aims to create a regional tech cluster. We visited Sunderland Software Centre and eVolve, both council-owned buildings which provide state of the art space for software companies to work. In this sector too, there is considerable potential for Japan-UK partnerships.
Over a networking dinner, we had the opportunity to discuss how to maintain, promote and encourage further links between Japan and the NE with Sunderland City Council Leader Cllr Paul Watson and Chief Executive Dave Smith, as well as business leaders from major Japanese investors and the University of Sunderland. We were impressed with the council’s determination to build on their success to date and their continued efforts to attract further foreign investment to the region.
The next day we crossed the border to Gateshead where we learnt about the long-standing relationship developed between the city of Komatsu in Ishikawa and Gateshead since the opening of the Komatsu Heavy Industry plant in 1985. Komatsu and Gateshead signed a formal twinning arrangement in 1991 and have engaged in several exchange activities since, one of the most successful being the Youth Exchange Programme through which young people from the city are given the opportunity to do a homestay in Japan, and vice versa. After a tour of the Komatsu plant, we were invited by the Leader of Gateshead City Council, Cllr Mick Henry, to view the Japanese Friendship Garden, provided as a gift to Gateshead from Komatsu in 2011 to celebrate 20 years of twinning.
Although in recent years the focus of international links has shifted from declarations of friendship and cultural activities to more pragmatic and economically beneficial relationships, JLGC believes that such international relationships remain essential. On this visit, the value of Japanese investment and international links for both the NE region and Japan was obvious, and the active approach taken by local authorities to attract international investment and maintain international relationships has been a vital factor in their success. We were very grateful for the opportunity to observe this in action and would like to thank all those who welcomed us to the region. JLGC will continue to work to support these existing links, and to encourage further relationships, particularly between local authorities and communities.
