Korean investors eye up UK manufacturers

The ambassador, Martin Uden, said trade relations between the two countries had gathered momentum recently following a series of successful investments from South Korea into UK companies which were in need of new leadership.

Speaking after a meeting with the chief executive of UKTI, Sir Andrew Cahn, Mr Uden said recent deals such as Lotte Group’s acquisition of Artenius UK and last year’s buyout of Avon Automotive's Vibration Management Systems by Dong-Ah Tires illustrated a “large vote of confidence” in the UK’s manufacturing base.

Trade relations between the two countries had gathered momentum recently following a series of successful investments from South Korea into UK companies.

“One recent development that really marks a change in the way Korean companies look at the UK has been the investment in a small number of UK companies that had good technology but for varying reasons needed new owners,” Mr Uden said.

“Most recently, the chemicals subsidiary of the Lotte Group bought Artenius UK from its administrators and are looking to re-open its chemicals plant on Teesside.”

The Artenius deal was made with the help of a £1.8m grant from One North East with a view to creating 132 new jobs at the Wilton plant.

The UK’s solid manufacturing base and reputation for manufacturing innovation has made it an attractive prospect to overseas investors, particularly those from the Far East looking to branch out and expand their global operations using existing skilled labour.

The largest ever Korean investment in the UK came in 2006 when Doosan Heavy Industries bought Mitsui Babcock, bringing with it new jobs and research and development opportunities at their centre in Renfrew.

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