Win Win

https://www.uktradeinvest.gov.uk/ukti/appmanager/ukti/ournetwork?_nfls=false&_nfpb=true&_pageLabel=north_west

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Lancashire-based Euravia Engineering & SupplyCo Ltd has announced that the Royal SaudiAir Force has awarded the company a multi-million contract for the repair and overhaul ofhigh-speed turbine engines.

Euravia's Managing Director, Dennis MendorosOBE, DL, FRAeS said: "Despite fierceinternational competition, Euravia once more hasproven its competitive credentials. We feel thatEuravia's reputation for quality and on-timedelivery has played a key role in securing thiscontract, and we will work in partnership withour customer and Al-Haitam to deliver thecontracted services and support RSAF'soperational requirements."

This contract comes on the back of the recentRAF contract award to Euravia for the design,repair and overhaul of the Sentry APU. Euraviais also supporting the French Air Force, NAMSA,

Royal Netherland Air Force, Pakistan, Chile,Ecuador, Kenya and other internationaldefence forces.

Euravia recently invested heavily in newfacilities, engine testing, equipment and trainingwhich has resulted in securing over 50 civilairlines and operators ranging from the PacificRim to the Middle East, across Europe,Canada and USA.

Mr Mendoros said: "Part of Euravia's success isattributed to the support and encouragementthat we have received from UK Trade &Investment over the years. The North Westoffice has been very helpful in arranging inwardvisits and facilitating meetings with prospectiveinternational partners, and during the recentFarnborough Air Show we had the opportunityto use extensively the UKTI facilities and meetcustomers and international businessassociates under the UKTI banner."

LANCASHIRE AEROSPACE COMPANY FLYING HIGHWITH ROYAL SAUDI AIR FORCE CONTRACT

FREE EVENT TO GET BUSINESSESON TRACKWITH LONDON 2012OPPORTUNITIES -DECEMBER 9TH 2008A FREE event is being staged by Cumbria Visionand the Northwest Business Network to giveCumbrian businesses the chance to learn aboutopportunities arising from the London 2012Olympic and Paralympic Games.The seminar and workshop will be held at

Rheged, Penrith, on Tuesday, December 9 from9.30am to 1pm.

Mark Hodgson, Strategy Manager withresponsibility for Olympics-related issues atCumbria Vision, said: “The London 2012 Olympicand Paralympic Games is a once in a generationopportunity for the UK and there is significantpotential for Cumbrian businesses to getinvolved through the many contracts that willarise from it both directly and indirectly.

“Many businesses in Cumbria have a long-heldcompetitive edge in those industries which willhelp deliver high quality games for all to enjoy.

It cannot be stressed enough that, just like thecompetitors who will compete for gold, youhave to be in it to win it.”

The event will also be used to raise awarenessof CompeteFor, the chosen website for theLondon 2012 contract opportunities. It actsas a brokerage service between buyersthroughout the London 2012 supply chainand potential suppliers.

To register online for the event visitwww.businesseventsfor1012.co.uk

“The great spectacle of the Beijing 2008Olympics and Paralympics, allied to thephenomenal success of British athletes, havegiven us a taste of what we can expect inLondon 2012 when the UK plays host to theworld. The difference is that the London 2012Olympic and Paralympic Games will be takingplace on our doorstep, providing an excitingopportunity for our communities to get involvedand for the Northwest to benefit in sporting,social and economic terms.” – so says AndyWorthington, Chair of the North West SteeringGroup for London 2012.

And North West companies are alreadysuccessfully competing for business! Over 34local firms have already secured work fromLondon 2012, and 28 companies have securedcontracts from the Olympic Delivery Authority(ODA), of which 72% are SME’s.

Over 2080 North West companies are nowregistered on CompeteFor - the official portal forLondon 2012 contracting opportunities. 83 NorthWest businesses have been shortlisted forcontracts, and two - Speedy Hire in Merseysideand Imagination Ltd in Wirral – have alreadywon work.

North West companies that have been workingdirectly with the ODA also include The TASPartnership Limited (Preston) – who haveundertaken a procurement study for theprovision of coach and bus transport within theOlympic sites, andWatson’s Steel (Bolton) whowon a contract to manufacture and fabricate thesteel structures for the Olympic Stadium.

Many North West companies have also wonbusinesses supplying other London 2012contractors, including a number of design &

creative industries who have successfully beenselected to be on LOCOG panels for theirmarketing, e-digital and print panels.

For more information on howyou can registeryour business visitwww.competefor.com/london2012. To enquireabout Business Link’s “fit to supply” programmevisit www.businesslink.gov.uk

GREAT OPPORTUNITIES FOR LONDON 2012

UKTI WinWin Winter 08-09 For LEN:UKTI 21/11/08 16:31

GROWTH IN THE GULF?

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The Gulf States usually refers to thekingdoms of Bahrain and Saudi Arabia, thesultanate of Oman, the states of Kuwait andQatar and the United Arab Emirates -together forming the Cooperation Councilfor the Arab States of the Persian Gulf.These 6 countries all have significantrevenues from oil and gas and smaller localpopulations, making their respective percapita incomes significantly higher thanthose of their neighbours.

The United Arab Emirates (UAE) is the UK’slargest market in the Middle East, and our 9thlargest export market in the world. Total exportsto Dubai were worth £1,972.55m, Abu Dhabi£316,606m and the Sharjah and the otherEmirates £466,622m in 2007.

The UAE has one of the highest GNPs per headin the world. While still heavily dependent onhydrocarbons, it is relatively well insulated fromperiods of low oil prices due to successfuleconomic diversification, large foreign exchangereserves and overseas investments. Over 85%of UK-UAE trade is conducted through Dubaiand the Northern Emirates. Dubai has a vibranttourist industry, a thriving free trade zone, and isembracing new technology through venturessuch as Dubai Internet City and Media City.

Saudi Arabia is our second largest export marketin the region after the UAE, with exports worth£1,873.2m in 2007. The UK is also Saudi Arabia'ssecond largest foreign investor after theUSA. Its growing economy is creatingopportunities for both exporters and investors,further boosted by moves to diversify awayfrom dependence on oil and gas; by economicreform programmes, market liberalisation; anda growing private sector.

Kuwait has an oil-rich economy heavilydependent on imports and represents a goodand varied market for UK exporters. Kuwaitibusinesses are very active in the re-emergingIraqi market and are keen to join UK companies

exploiting opportunities. Kuwait's geographicalposition makes it a natural gateway tothis market.

Qatar’s economy had been growing at anamazing pace. Revenues from the world’s 3rdlargest natural gas reserves are funding some ofthe biggest infrastructure and economicdiversification projects anywhere in the world.Qatar’s GDP per capita was forecast to exceed$67,000 in 2007 making it one of the richestcountries in the world. Hundreds of billions ofdollars are being spent upgrading power,transport and water infrastructure networksand on social development programmes toincrease capacity in the ICT, education andhealthcare sectors.

Bahrain has a small and reasonably prosperouseconomy with less dependence on oil than mostGulf states. It’s diversity and openness continueto present opportunities for exporters.Privatisation is a key part of economic policy,and will include the service and manufacturingsectors, in particular tourism, communications,transport, electricity and water, the portsand airport service, oil and gas sector andpostal service.

Oman was worth £268m to UK exporters in 2007(goods only). The country relies on oil for most itsrevenue, and defence accounts for one third ofits expenditure. There are key opportunitiesacross a range of sectors including tourism.

Can the Gulf States continue to grow in thiscurrent uncertain economic climate? The latestfinancial comments predict that althoughweakened by falling oil prices, and reducingvalues of sovereign wealth funds, thegovernments in the Gulf States will increasepublic sector spending to maintain theirexpansion – although this will be at a slowerrate than originally planned. They will want tocontinue with the key infrastructure and powerprojects designed to reduce their long-termdependency on oil revenues. Whilst economistsare reducing their forecasts for economicgrowth – they are still predicting real growth ofaround 5% next year.

FORTHCOMING EVENTSTo help North West companies accessthese markets we have an ongoingprogramme of events. Following on fromour large multi sector market visit inNovember we have a series of sector-focused visits giving NW companies theopportunity to visit key exhibitions:

• 19 – 21 JANUARY2009ABU DHABI –WORLDFuture Energy Summit With over 15,000attendees expected to attend in 2009, thesummit and exhibition will be the largestmeeting of influential figures within therenewable energy industry - covering a widerange of themes including energy policy, greenbuildings, clean transport, solar, wind, biofuels,ocean power, geothermal and nuclear.

• 26 – 29 JANUARY2009DUBAI – ARAB HEALTHThe Arab Health exhibition and congress is theregion's premier event for the Middle Eastbringing healthcare manufacturers,wholesalers, dealers and distributors togetherwith some of the most important and influentialdecision-makers in the Arab world. ArabHealth 2008 showcased products and servicesby more than 2200 exhibitors and attractedmore than 50,000 healthcare professionalsfrom all over the world.

• 23 – 26 FEBRUARY2009DUBAI - GULFOODGulfood is the region's largest and mostimportant food and hospitality industry event.The exhibition is a showcase formanufacturers, distributors, and suppliers fromaround the world. Gulfood 2007 attracted37,618 trade visitors from 140 countries with2,471 exhibitors from 75 countries.

For more information or to register for theseevents contact the North West InternationalTrade Team Tel: 0845 603 7053 E-mail:[email protected]


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A British Chamber of Commerce surveyconducted in 2004 found that 80% of exportmanagers in the UK were unable tocompetently conduct dealings in even oneforeign language – and given that 60% ofBritish trade is with non-English-speakingcountries, that’s a worrying statistic.

“One in five businesses here actually losemoney because of their lack of language skills,”says Dr Cristina Sousa, managing director of theRegional Language Network North West.

While our European counterparts aim to haveemployees skilled in three languages, we in theUK have been resting on our laurels thanks toour widely-spoken native tongue. To retain acompetitive edge companies need to thinkseriously about the importance of languages inbusiness, especially when involved in importsand exports.

Dr Sousa and her colleagues are seeingimprovements, however. “Speaking to theregion’s exporters, we’re seeing more interestin languages, and less shying away from thesubject,” she says. “More companies in theNorth West are employing people withlanguage skills – whether intentionally or not.”

The hi-tech sector, closely followed byprofessional services, are two areas leadingthe way in acknowledging the importance oflanguages and cultural awareness, and aremuch more likely to recruit staff because oftheir linguistic capabilities.

“In the high-tech world, health and safetyissues, as well as requirements for instructionsand manuals to be available in languages otherthan English, have in themselves raisedawareness within the sector,” says Dr Sousa.“We see a lot more engagement in industriesthat already have legal requirements touse languages.”

However, even managers who recognise theneed for language skills within their businessesmay still need an extra push to overcomeperceived barriers such as extra staff resourcesand length of time for language training.

“Many people realise that language skills couldhelp them win new business, but are put off bythe effort, and the often-repeated mantra ‘wehave all the business we can handle’, which isactually a barrier to expansion,” says Dr Sousa

Dr Sousa recommends some basic first steps forcompanies considering the importance oflanguage skills.

• Look at your business activities in detail,including all the markets you’re currentlydealing with or would like to deal with, and allthe languages and cultural aspects involved.For example, if you have Spanish skills in-house but you only deal with Spain, couldthere be further business opportunities inSouth America?

• Look at your staff resources – you may wellhave resources that you didn’t even know youhad, whether that’s a language learned inschool or a community language such as Urduor Polish.

Perhaps you have a member of staff marriedto a French speaker, or learningconversational Spanish because they have aholiday home in Spain?

• Does the structure of your overseas activitiesreally require the use of agents, or could youutilise improved language skills and culturalawareness to represent your business directlyin some markets?

• Is your cultural knowledge up to scratch?

For example, if you’re dealing with Chinesesuppliers, do you know that they would hate tobe presented with a clock as a gift, because ofthe etymological associations with death in thatcountry? You can prevent these sorts ofmisunderstandings by taking the time to studybasic cultural awareness.

CASE STUDY : ALPHASONICS LTD.17% EXPORT SALES INCREASEAFTERWEB TRANSLATIONKnowsley-based Alphasonics Ltd, specialists inultrasonic cleaning equipment for the printing,engineering and electronics sectors, have seenhugely positive results from using languages init’s business. With 12 staff, the company hastrading partners in over 20 countries worldwide.

Managing director David Jones found that non-English communication couldn’t be left to thecompany’s overseas agents if Alphasonics wereserious about forging great relationships to growthe business. “We wanted to prove toprospective customers that we weremaking the effort to communicate in theirlanguage,” he says.

Web communications were the starting point onAlphasonics’ languages odyssey. “We’d onlybeen viewing the website from an English-speaking point of view,” says David, “whichwas bad news for a company with globalbusiness.” The decision was made to make thehome page available in several key languages,with agents’ contact information for furtherdetails. Translations into 14 languages includingJapanese and Malaysian ensued.

David, a regular business traveller to Europe, isnow learning Russian and Spanish, which isalready helping him win new orders.

Following the web translations, Alphasonics’export sales increased from 37% to 54%.“We’ve had a great response from internationalcustomers and suppliers,” says David. “Beingable to refer people to our site makes a hugedifference in terms of customer relationships,and helps earn respect.”

For more information about Regional LanguageNetworkNorth West call 0161 932 1035 or visitwww.rln-northwest.com.

Alphasonics website: www.alphasonics.co.uk.

TALKING THE TALK:LANGUAGES HELPING NORTHWEST BUSINESSES GO THE DISTANCEBy Dr Cristina Sousa, Managing Director of the Regional Language Network North West


COME ON DOWN UNDERBy Paul Noon, UKTI’s Director of Trade & Investment in Australia.

It’s easy to think of Australia as the landdown under – a great place to live blessedwith sunshine, beaches and winning sportsteams. But just as importantly, it’s a greatplace to do business.

Australia has been one of the world’s economicsuccess stories for nearly the last two decades.It’s a major economic powerhouse in the SouthEast Asia and Pacific region. Fuelled by aresources boom, its surging economy is nowmore than AU$1 trillion (around £450 million) -the same size as that of Indonesia, Singapore,Malaysia, and Thailand put together.

What’s more, it’s on the doorstep of the fastestgrowing area of the world, and offers a naturaland stable base for expansion into Asia. As a keysupplier to the engine room of China and others,Australia is very much an integral part of thethriving Asian region.

While there are challenges, the economycontinues at full stretch, and the country’s termsof trade have reached historically high levels.

Besides its attractions as a gateway to Asia, anda key provider of raw materials into the engineroom of China and others, Australia offers greatpotential itself to British business. It is a moresignificant market for UK exports than itspopulation of 22 million might suggest.

The UK is Australia’s fourth largest tradingpartner overall, and the fifth largest source ofimports. Australian investment in the UK is £18.3billion, with major investors including Macquarie,NAB, Computershare, News Corporation,Cochlear, Stem Cell Sciences andWestfield.

In Australia, UK investment stands at £21.9billion. Many of the UK’s world players arerepresented including: BG Group, BP, Shell,International Power, Xtrata , CadburySchweppes, Vodafone, Virgin, Travelex and RBS.BHP-Billiton and Rio Tinto are dual listed.

There are many more small to mediumenterprises covering a broad range of businessand from all parts of the UK that have beenattracted down under.

From a business perspective, Australia is asophisticated, innovative and modern country. Ithas an open market based economy thatencourages business and investment. In recentyears, a number of reforms have boosted thecountry’s international competitiveness.

These have included reform and deregulation ofthe financial and air transport systems, lowercorporate taxation, and greater flexibility of thelabour market. Tariff levels have been reducedto single digits. The financial system is well-regulated and the country offers an educated,multicultural and multilingual workforce.

Doing business down under is aided by thelongstanding historical and cultural links with theUK. Our two peoples share common values suchas a commitment to democracy, freedom ofexpression and religion, tolerance, a sense of

fair go, of providing a helping hand to those inneed, and of standing up for what is right.

There is a shared language, familiar legal andpolitical institutions, and a similar businessculture. Not to mention a shared sense ofhumour, and appreciation of irony. For UKbusiness then, Australia is an attractive target.

UK Trade & Investment has identified a numberof key business sectors that it believes offeropportunities. These include:

ICTFood and DrinkAgricultureOil and GasCommunicationsMarinePharmaceuticalsCreativity and Design

Even the “tyranny of distance” is shrinking withadvances in technology and communications. Tothis end, Australia offers an advanced ICTinfrastructure and technological adaptability.

All of it means that it’s a good time to dobusiness down under. So if you’re in business,and you’ve not looked at Australia, perhapsyou should.

For more on doing business down under pleasecontact the NorthWest International Trade TeamTel: 0845 603 7053E-mail: [email protected]

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INTELLECTUAL PROPERTYAN INTERNATIONAL STRATEGYBy Miles Reese at the International Patents Office

Everything from a tube of toothpaste to thelatest MP3 player will have Intellectual Property.The chemical formula or technical parts can beprotected by patents, the shape or appearancecan be protected by registered design, the brandname can be protected by trade marks and anyartwork or music is protected by copyright.

HOW DOES THIS AFFECTYOUR BUSINESS?Regardless of what product your businessmakes or what service it provides, it is likely thatyou are using and creating intellectual property.Almost every business will have a trade nameor a trade mark. Many will have valuableconfidential business information that theymay wish to protect. Others may havedeveloped creative original designs orinvented a new process.

WHY USE IP?Intellectual property can assist you in almostevery aspect of your business development andcompetitive strategy, from product developmentto marketing. It may also play an important factorwhen considering exporting or expanding yourbusiness abroad.

GLOBAL PROTECTION?If an idea has global appeal, then the cost andresources required to secure all the commercialrights in advance would be daunting even by thestandards of the largest innovator. In place ofthis, there is a series of mechanisms governedby theWorld Intellectual Property Organisation(WIPO) in Geneva that give enterprises thechance to explore how an idea is goingto perform.

This gives you options. For a relatively smalldeposit, you can secure your position. If anapplication takes off, you can then nail downthe IP. If it flops, then you can let your rightsquietly lapse.

Financially, you should be able to postpone yourcosts and match them more closely to yourexpected revenues. At the same time, you candemonstrate to investors that you are protectedin all the main markets.

It also helps when negotiating with potentialpartners and distributors. At home, you mightalready have an established reputation.Overseas you are a newcomer. So, if you have aclear claim to the rights, they will be happier totalk you. After all, why should they spend theirpromotional budget on you, if imitators can pickup the idea after launch?

PATENTSFor technical breakthroughs or improvements,you have two layers of international support.First, you are free to talk about your innovationfor a year without jeopardising your rights. Underthe Paris Convention, any foreign application istreated as if its filing date was the same as athome. You are given a backdated priority overeveryone else.

Secondly, under the Patent Co-operation Treaty(PCT), you have a period of grace to decide inwhich markets you actually want to pursue anapplication. For around £2,000, you can make anapplication in a single language to WIPO, whichthen issues a report on any ‘prior art’. From thisfiling date, you then have up to 30 months beforeyou move to the next stage of deciding in whichmarkets you are actually going to make afull application.

TRADE MARKSLike the PCT, theWIPO runs a unified schemefor filing and renewing trade marks. Under theMadrid Protocol, you can pick and choosewhere you would like to be protected in up to 60different countries. In effect, you gain a bundleof national rights, which are centrallyadministered, so saving substantially on cost.

Applications have to be straightforward enoughto work across the board. Your applicationcannot differ or maximise your protectioncountry by country, although any claims have tobe pursued nationally. Even so, the MadridProtocol is a highly effective starting point forenterprises looking to establish a global brand.

COPYRIGHTFor any expressions of original thinking in theform of documents, presentations, software andwebsites, there is a flexible set of internationalagreements that give you a series of automaticrights. Under the most important, the BerneConvention (administered byWIPO), you havethe same rights in 150 participating countries asany local enterprise.

Within each country, there are significantexceptions and limitations in how copyright isinterpreted. Guidelines within the BerneConvention keep these within bounds. Theseground rules have been instrumental in allowingcopyright to develop and adapt in the face ofrecent advances in communications technology.

UK TRADE & INVESTMENTAND UK-IPO PUBLICATIONSUK Trade & Investment, in partnership with theUK-IPO, have developed a series of IP Primersto help British companies in the major marketsaround the world.

The IP Primers examine IPR in Brazil, China,India, Korea and Vietnam. To access the guidesgo to www.uktradeinvest.gov.uk/ukti/iprguides

You can find more information on the UKIntellectual Property Office websitewww.ipo.gov.uk or by calling 08459 500 505

Every product or service that we use in our daily lives is the result of a long chain ofbig or small innovations, such as changes in design or improvements that make aproduct look or function the way it does today. Take for example the mobiletelephone, its technology can be traced back to an idea pioneered by the Hollywoodactress Hedy Lamarr back in the 1940’s. Many others have since improved thedesign and function of such products, and legally protected their improvementsthrough the acquisition of IP rights.


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Global confidence in the North West isbooming, with 2007-8 figures showing thatthe region is once again one of the UK’s toplocations for Foreign Direct Investment (FDI).

Overseas companies contributed a massive£10.3 billion to boost the region’s economy – analmost tenfold increase from the 2006-7 figure of£1.4 billion.

The region attracted 156 inward investmentprojects, many related to advancedmanufacturing and R&D, with over 14,600 jobscreated or safeguarded.

FDI plays an important part in the North Westeconomy. A study by DTZ has found that over17% of regional gross value added (GVA) isaccounted for by foreign owned companiesoperating in the North West, and that theireconomic output (GVA) per worker is almost50% higher than the regional average.

The Northwest Development Agency (NWDA)prioritises foreign direct investment as a crucialdriver of economic growth in the region. Withpartner organisations such as UK Trade &Investment (UKTI) and other stakeholders itworks to promote the area as a dynamic locationfor overseas companies, as part of the NorthWest Internationalisation Strategy and ActionPlan (ISAP).

The North West International Business Forum iskey to driving this forward. Chaired by Anil RuiaOBE, Managing Director of Wrengate Ltd, andmade up of senior figures from business,university and research sectors as well asNWDA and UKTI, the forum has led to asignificant increase in resources deployed topromote the region overseas– with recentfigures standing as testament to their success.Selective Finance for Investment in England (SFI)funds have also played a part in helping theregion land big projects. General Motors’ recent£130 million investment in its Vauxhall plant atEllesmere Port was secured with the aid of anSFI grant and training support from the NWDA,

and £3 million SFI funding helped St Helens firmPilkington, acquired by the Japanese NSG groupin 2006, secure a £40 million investment todevelop a hi-tech new coatings facility next yearto help the company maximise opportunities inthe emerging solar energy market.

Steven Broomhead, NWDA Chief Executive,said, “These figures are a real lift from recentstories surrounding the slowdown of the globaleconomy and the financial credit crunch. FDIhas been a fierce competition for some yearsnow and we should take a great deal ofencouragement in our region’s achievements.

“This current year will see the toughestecomonic climate the UK has faced since theRegional Development Agencies wereestablished 9 years ago, and we should beprepared for an overall drop in the UK’s FDIperformance, but I am confident that ourdiverse economy, particularly here in theNorth West, can ride out this storm in thelonger term.”

NORTHWEST ONE OF THE BESTLOCATIONS FOR INWARD INVESTMENT£10.3 BILLION OVERSEAS INVESTMENT AS INTERNATIONALISATION STRATEGY PROVES A SUCCESS

The development of thePrinovis site in Liverpool

CASE STUDY : PRINOVISThis state-of-art gravure printing facility is one ofthe largest inward investments in the region inrecent years – bringing £120 million to the NorthWest economy. Part of a joint venture betweenmedia services provider arvato AG and two ofGermany's largest publishing companies, Gruner+ Jahr and Axel Springer, Prinovis owns fiveprinting plants in Germany and employs over4,300 people.

Located at the International Business Park inSpeke, Prinovis Liverpool opened in 2006 andachieved its target this year to be running at fullcapacity, serving a nationwide customer base.One of the largest printing plants in the UK, it hasalready created 400 jobs, with potential forfuther expansion.

Adequate space to develop the 500,000 squarefoot facility, a suitably skilled workforce and theregion’s excellent transport infrastructure wereall key considerations in deciding to build thenew plant in Speke.

The NWDA co-ordinated the efforts of severallocal agencies, including Liverpool City Council,before meeting representatives from Prinovisto convince them of the benefits of investing inLiverpool. The 154-acre Liverpool InternationalBusiness Park was identified as anideal location.

"The site offered us considerable benefits," saysBob Robinson, managing director of PrinovisLiverpool. "There was more than enough roomfor the facility, Liverpool John Lennon Airport isvirtually next door and the road infrastructure is

excellent. We can truck materials anywhere inthe country in just a few hours."

The third and decisive element was the issue ofskilled labour as Rotagravura printing is aspecialist skill. Working with the Learning andSkills Council and other local bodies such as TheMersey Partnership, the NWDA collated in-depth research on the size and type of labouravailable, including the skills of the workers,training and education and wage levels.

"The research demonstrated that the skills weneeded were readily available locally. Overall,NWDA support was instrumental in guiding usto our decision. They have a high degree ofknowledge and contacts that are invaluablewhen you are making this sort of invesment,"says Robinson.


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PLAY TOWINWITH TEAM NORDICHOW UKTI CAN HELP YOU DOBUSINESS IN NORTHERN EUROPEBy Mette Nikolaisen, Nordic Communication Manager, British Embassy Copenhagen

With its 25 million people in a land areabigger than France and Germany combined,the Nordic region is dynamic, highlysophisticated and very competitive, with astable political and economic climate.

Denmark, Finland, Iceland, Norway and Swedenare all outward-looking global traders: home tobrands such as Nokia, Carlsberg, StatoilHydro,IKEA and Ericsson. The countries regularlyappear in the top ten world rankings forcompetitiveness, internet connectivity, genderequality and educational excellence. And whenit comes to doing business with the Nordiccountries, language is normally no problem, themarket is close, there are good air connectionswith most UK cities plus an openness towardsthe UK, which is the result of very many years oftrade, co-operation and understanding.

The Nordic region presents opportunities in allsectors, but British quality products and servicesare particularly well received within thefollowing sectors:

ICTThe Nordic markets offer an excellent arena forIT and communications businesses. Thepresence of the large multinationals such asEricsson, Nokia, Telenor, TeliaSonera and TDC,and a large number of innovative IT companiesthat produce embedded technology drivingtomorrow’s communications needs make theNordic ICT markets ideal for any companylooking to grow internationally throughpartnerships, direct sales or joint R&D.

SCIENCENordic countries have recognised thesignificance of nanotechnology. Finlandspecialises in innovative nano structuralmaterials, nanosensors and actuators and newnanoelectronics solutions, and is also at theforefront of development in printed electronicsand atomic layer deposition (ALD) technologies.Denmark also has many nanotechnologyprojects in the physics and chemistrylaboratories of its universities and sectorresearch institutions. Sweden has one of themost active markets in Europe with lots ofnanotech spin off companies from universities inStockholm/Uppsala, Gothenburg, Linköping andLund. Sweden is also strong in engineering andpharma/biotech. The Research Council ofNorway launched the nanotech strategyNANOMAT in 2002.

LIFE SCIENCESThe Nordics is one of the fastest growing lifescience regions in Europe with a number oftrans-national clusters. Within these clusters,strong collaborations exist and historical Nordiccompetitors are now working together.

Important Nordic biotech clusters include theDenmark-Sweden - Medicon Valley, the OsloCancer Cluster of 40 companies, the MedCoast,running between Sweden's second largest cityGothenburg and Oslo, the Lake MälarenBioregion, comprising the cities of Stockholm,Uppsala, Söndertälje and Strängnäs and finallyBioTurku in south-west Finland.

MASS TRANSPORTOpportunities exist for UK companies supplyingrail equipment and rail consultancy orengineering services in Denmark, Finland,Norway and Sweden. In each of these markets,there is a shortage of specialised rail skills forMetro and mainline projects, bridge projects andsignalling. There are local contractors andimporters looking for partnerships to strengthentheir sources of supply and skills knowledge.

CONSUMER GOODSThe Nordic region is an ideal export market forquality UK products. The range of consumergoods exported from the UK stretches from

clothing and accessories to food and drink,giftware and gardening equipment with muchmore in between. Consumers are familiar withBritish brands, in particular the more expensive,niche products. They expect quality and havethe disposable income to pay for it.

EDUCATIONThere is a clear tendency to adopt new,innovative technical solutions to complementtraditional teaching. Web based learning toolsare already in use, as are new products &learning tools (e.g. performance simulations,wikis, blogs, serious games) targeted at highereducation and the corporate sector.

ENERGYThe Nordic region is important to the UK, interms of trade, inward investment and energysecurity. With Norway still providing 25% of ourdomestic gas supply many British companiesstill look to the North Sea and the Arctic for long-term business growth. The energy teams in theNordic also look to the future. Norway andDenmark lead the world in the development ofnew cleaner energy, especially hydro-power,tidal power and wind. Swedish companies excelin biomass energy, while Icelandic firms havecarved out a niche in the geothermal sector.Carbon Capture techniques are also ofincreasing interest.

HOW CANWE HELP?There are a number of ways UK Trade &Investment’s Team Nordic can help Britishcompanies. Whatever the size of the company,they can tailor the service to suit a number ofrequirements, such as a £500 cross Nordic'taster' for anyone interested in having a quicklook at the five countries (or any combination ofthem). This would include a couple of contactsin each country to follow up with. Or, if youprefer, the team can provide more tailoredservices, including validated lists and even anappointment service. For that they will discussyour requirements in greater detail beforeagreeing the level of service.

For further information on the full range ofservices on offer, please go to:www.uktradeinvest.gov.uk/ukti/nordics


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On 1 April 2008, oncology researchers andcompanies from the UK and Scandinaviakicked off UK Trade & Investment's NordicOncology initiative. During 2008-9 UKTI’sNordic life science team will facilitatetargeted oncology crossover initiatives tostimulate knowledge sharing as well asinnovative research and industrycollaborations.

“We recognise that tackling cancer effectivelydepends on targeted collaboration at every step.We also believe in creating a strategic meetingplace to foster innovative solutions andpartnerships’, says Christina Liaos, UKTI Directorin Denmark.

“Based on our knowledge about oncologyactivities in the UK and in the Nordic region weare in the process of mapping out companies,universities and other oncology stakeholders inall five Nordic countries and in the UK. This

combined knowledge will be the cornerstonefor our initiatives over the year. It will notanswer all questions but it will identify areas ofpotential collaboration and show theopportunities for partnerships.”

To find out more about this initiative Britishcompanies can meet the Nordic UKTI LifeScience team at:

• Biotech Business Exchange and Genesis,London, 8 - 10 December

• UK-Nordic Oncology Conference,Copenhagen, March 2009

SPOTLIGHT ON NORDIC ONCOLOGY

SUCCESS STORY : CABIS GROUPCabis Group started their Nordic journey whenthey won a contract with Norwegian Jo Tankersin 2005 to supply a safety and quality softwaresolution for their ships. Since then the relationshiphas developed - Cabis has provided the latestversion of their software to Jo Tankers and islooking to supply an additional application forskills development.

Adrian Dore, Cabis Group’s Managing Director,says, “We managed to find a gap in the market,which I believe is essential to win contracts in acountry like Norway. You have to stay focusedon what you are trying to achieve since the

competition from local companies is tough. Butwhen we first entered the market it was like adream – straightforward, with no languagebarriers or problems at all.”

Cabis also undertook market visits to Sweden andFinland to identify partners, which is theirpreferred way to secure complex sales in a newmarket. The company commissioned reportsfrom the Overseas Market Introduction Service(OMIS), which provides research, introductionsand the best country and sector specificbusiness support and advice available, sourcedthrough UKTI’s contacts in embassies andconsulates worldwide.

Adrian continues, “For a company of our size thechallenge to break into a new market comesdown to sales and marketing. Research andpreparation is key at this stage and we havefound it helpful to work with UK Trade &Investment in a number of countries to identifypotential customers and set up meetings, usingtheir Overseas Market Introduction Service”.

For further information about the OverseasMarket Introduction Service (OMIS), pleasecontact the North West International Trade TeamTel: 0845 603 7053E-mail: [email protected]

SUCCESS STORY : JOHN HEWITTMillom artist John Hewitt is hoping to become anovernight success at the age of 59 with the helpof UK Trade and Investment’s Passport to Exportprogramme, UKTI’s flagship service for new andinexperienced exporters.

He contacted UKTI last year after wonderingwhy nearly 700,000 hits on his website -www.abstractacrylicart.co.uk - hadn’t beenturned into sales of his work which involvespainting hard-edged abstract compositions onthree-dimensional canvasses.

Talks with UKTI staff, in particular his CumbrianInternational Trade Adviser, Ian Readman, led toa visit to Denmark.

John says, “I loaded my Land Rover Discoverywith 13 paintings, booked a ferry and set off forthe British Embassy in Denmark where Ipresented my work to representatives fromseven regional embassies.”

Relationships developed quickly with the GalleriBastillen in the Frederikberg district, and Johnsoon returned for the launch of his work at thegallery’s anniversary show on 8 August attendedby 350 guests and opened by the BritishAmbassador who joined John on a subsequenttelevision feature.

John adds, “For a gallery to take a substantialquantity of work on first viewing is exceptionaland I am extremely happy with all the help andsupport I received through the Passport to

Export programme and from the trade team inCopenhagen. I was also honoured that theAmbassador in Copenhagen, David Frost tookpart in the exhibition. Brilliant result!”

Ian Readman says: “While the Denmark visitwasn’t an official sales trip, it has led John intoan excellent new market and he will continue toreceive full backing through the Passportprogramme which is designed to helpnovice exporters”

For further information about the Passport toExport Programme, please contact the NorthWest International Trade Team Tel: 0845 603 7053E-mail: [email protected]


10

THINK BUSINESS:THINK INDIA

AVISION OF INDIA1ST DECEMBER 2008, THE LOWRY, SALFORDQUAYS 6.30PM – 9.30PM

Building a new ‘media city’ for the world’sleading creative and digital businesses will notonly bring a wealth of talent to the North West –it will help establish new links betweenbusinesses in the UK & India .

Join us for a special FREE event at MediaCity,and find out how your business can share inthese great opportunities.

Speakers will include Jason Legget, NWDAProject Director of MediaCity, award-winningproducer Parminder Vir, and Brian Thorp,Regional Director for UKIBC.

Plans are even underway to bring along aguest speaker from film capital of theworld... Bollywood!

FINANCIAL AND PROFESSIONALSERVICES SECTOR MISSION TOMUMBAI AND PUNE30TH JANUARY– 7TH FEBRUARY2009

Financial and professional servicesorganisations are invited to join this mission, ledby pro-manchester and supported by UKTI NorthWest and the Northwest Development Agency.India has a considerable need for physicalinfrastructure (transport, power, water andhabitation) and yet suffers from capital shortage.This presents significant opportunities for projectfinancing, development of turnkey solutions andinnovative funding packages including PublicPrivate Partnerships (PPP).

The development of financial services in India, isalso very strong, and opportunities exist acrossthe whole sector. Firms who can offer qualityadvice in areas such as banking, tax, law, PPP,IPO, recruitment and insurance are encouragedto join the delegation.

The mission is open to any relevant North Westcompany from the financial and professionalsector. An experienced International TradeAdviser will provide pre-visit advice, as well asassistance with contact building and marketresearch. There will also be pre-visit andin-market briefing from local British Embassystaff, networking receptions and localadvance publicity.

NORTHWEST MARKETVISIT TO MUMBAI16TH FEBRUARY– 21ST FEBRUARY2009

UKTI North West, supported by NWDA and inassociation with Chambers of Commerce NorthWest (CCNW) are organising a market visitto Mumbai.

The visit is designed to help North Westcompanies explore new opportunities in Indiaand the itinerary offers a structured groupprogramme but with the flexibility to addressindividual requirements and marketidentification. The UK has strong ties with Indiaand this visit will build on the success of ourprevious market visits. NW companies are wellpositioned to take advantage of this growingexport and investment market.

Experienced International Trade Advisers willprovide pre-visit advice on both country andsector issues, as well as assistance with contactbuilding and market research. There will also bepre-visit and in-market briefing from local BritishEmbassy staff, networking receptions and localadvance publicity.

Applications are invited from North Westbusinesses in all sectors and the closing date forapplications is 17th December 2008.

FORTHCOMING EVENTS AND TRADE MISSIONS

Eligible North West SMEs who are new to themarket may qualify for UK Trade & InvestmentMarket Visit support of £550.

For further information on all of these eventsplease contact the North West InternationalTrade Team on 0845 603 7053 or [email protected]

India is the second largest export market in the developing world after China, and one of UK Trade & Investment’s designated High GrowthMarkets. UK exports of goods and services to India exceed £3bn. The UK has strong ties with India, and UKTI North West, working closelywith the Northwest Regional Development Agency (NWDA) offers a range of services and events to ensure companies are well positioned totake advantage of this growing export and investment market.


11

For small businesses, the global defencemarket can appear to be a daunting arena.Howard Gibbs, Head of the Small BusinessUnit at the UK Trade and InvestmentDefence & Security Organisation, looks athow it can assist them in accessingadditional help when looking to exportgoods or services.

The defence industry is one of the UK’s mostsignificant sectors, with our defence exportssecond only, in global terms, to the UnitedStates. Yet so much of our overseas success isachieved by so few - approximately 97% ofdefence exports are won by the 20 largestUK companies.

In order for the UK to remain at the competitiveedge of defence requirements and homelandsecurity technology, the industry depends notonly on our Prime Contractors, but also onsecond-tier suppliers and niche productmanufacturers. These smaller businesses arewidely recognised as being the heartbeat of theUK’s defence and security community, drivingthrough change by being innovative anddeveloping new technologies.

In April this year the UKTI Defence and SecurityOrganisation (UKTI DSO) was established, and anew Security Directorate formed, bringingtogether UKTI expertise and the supportpreviously offered by DESO, the Defence ExportServices Organisation in the Ministry of Defence.

UKTI DSO’s remit is to help maximise overseassales of UK defence and security equipment andservices, employing both military and civilianstaff based in the UK and overseas and providinga range of services from regional marketingadvice, analyses and reports through to

equipment evaluation, promotion,demonstration and training provided bythe British Armed Forces.

Breaking into the overseas defence and securitymarket can be challenging, if not daunting, forsmall companies, and even for those thatpersevere and become successful it can be along, slow process, putting considerablepressure on company resources andother priorities.

One of the most vital services previously offeredby DESO and transferred to UKTI this year, is theSmall Business Charter, managed by UKTI DSO’sSmall Business Unit (SBU). The Charter was setup in March 2004 and offers a range ofassistance to small firms selling products andservices to overseas defence and securitycustomers.

The SBU has three key objectives:• To identify small companies with the desire andpotential for defence and security exporting

• To understand their business and develop aclose, two-way relationship with them

• To ensure they are made aware of and areable to take advantage of the most appropriateUKTI, MoD and wider government supportavailable in pursuit of defence and securityexport sales.

To be eligible for Charter membership thecompany must be an SME whose products orservices originate from within the UK. Part ortotal ownership by a larger company does notaffect eligibility for Charter membership.

Members can treat the SBU as a ‘one stop shop’for all defence and security export-relatedmatters, and each Charter member is allocatedan SBU account manager, whose job it is toget to know the company and provide and

facilitate appropriate support from within UKTIDSO and elsewhere.

Support is tailored to the individual needs ofeach company, and Charter members arerequested to keep in touch with their accountmanager and be open and honest about anydefence and security export-related issues.

The SBU offer a number of free events andactivities, exclusive to Charter members,including regional business briefings andpresentations on aspects of defence andsecurity exporting. There is also the opportunityto exhibit and demonstrate small items ofportable kit to UKTI DSO staff, both militaryand civilian.

They also collaborate with UK defence tradeassociations and regional industrialgroups to co-host higher-profile events andactivities. Costs are kept to a minimum, withdiscounts negotiated wherever possible, andCharter members will often receive advancenotification, putting them at the head ofthe queue.

Charter members also have exclusive access totheir own website – the Charter MembersCentre. The site contains a wealth of informationranging from important announcements aboutfuture policy and forthcoming events andactivities to Charter membership-relatedguidance and links to other importantgovernment and trade websites. The site alsocontains downloadable versions of key policyand promotional material. The Charter MembersCentre is supplemented by ‘Small Talk’, a freenewsletter highlighting the key points of interestcurrently online.

In the last 4 years over 530 companies havesigned up as Charter members; and in thefinancial year ending 31 March 2008 Chartermembers recorded defence and security exportsales in excess of £320 million.

Charter membership and the services of the SBUare entirely free of charge, as is the vast majorityof the advice and support on offer. UKTI DSO’sposition within government gives it uniqueaccess to ministers and senior UKTI andMoD officials who are committed to helping UKindustry succeed.

Charter membership is not the only way for smallcompanies to conduct business with UKTI DSO –but it is the best way.

For more information contact:Howard Gibbs, Head of Small Business UnitUKTI DSOKingsgate House66-74 Victoria StreetLONDON SW1E 6SWTel: 020 7215 8204 Email:[email protected]

This article was first published in DefenceContracts Bulletin.

OPPORTUNITIESIN GLOBAL DEFENCE


CREATING THE IDEAL ENVIRONMENT FOROVERSEAS TRADE UKTRADE & INVESTMENT AND ENVIROLINK NORTHWEST

AREWORKING TOGETHER TO HELP ETS COMPANIES

CASE STUDY :VIRIDIAN SYSTEMSViridian Systems is aWirral based company thatmanufactures pneumatic pumps forcontaminated land and leachate. The companywas referred to Envirolink Northwest byInternational Trade Advisor Charles Jacobson.

Karl advised Managing Director Roger Dixon onopportunities in overseas ETS markets, and inMay 2008, Viridian joined a visit to IFATMunichhosted jointly by Envirolink Northwest,AdvantageWest Midlands and the FrenchChamber of Commerce.

Enterprise Europe organised meetings withoverseas companies, and Viridian met andappointed a Colombian distributor whoconducted market research on their behalf,identified companies interested in their productsand secured an order in the first four months.

Viridian has subsequently received furtherorders in Latin America, and this month(November) they are attending FIMAI 2008, LatinAmerica’s biggest and most popularenvironmental trade fair with a view toexpanding their business in the region.

Managing Director Roger Dixon says, “UK Trade& Investment have been extremely helpful inproviding us with support and advice on ourinternational trade strategy. As a result we havebeen able to develop our business overseasmuch faster than if we had been trying to tacklenew markets alone.”

For further information on EnvirolinkNorthwestplease visit www.envirolinknorthwest.co.ukorcall 01925 813200. Viridian Systems can becontacted on 0151 639 8666 or visitwww.viridiansystems.com.

Envirolink is funded by the NWDA along withcentral government departments, the regions’local authorities and industry.

The world market for energy andenvironmental technologies and services(ETS) is currently valued at £2,723,000million according to a recent studycommissioned by Envirolink Northwest,with the UK market valued at £95 billion,and projected to grow to £170,710 billionby 2014-15.

In the North West the ETS sector includes morethan 2,500 companies, has a turnover greaterthan 6.5 million and employs more than 79,000people, representing 10% of the UK market. ETSis a priority sector within the Regional EconomicStrategy as set out by the NorthwestDevelopment Agency (NWDA).

Currently, the North West’s share of UK ETSexports is comparatively low at 7%. In order toaddress this, UK Trade & Investment (UKTI) havehad a secondee in Envirolink since 2004, withspecific responsibility for delivering theinternational element of Envirolink Northwest’sETS strategy.

Envirolink Northwest is a not for profitorganisation, launched in 2000 to support thedevelopment and growth of ETS in the region.UKTI are working with Envirolink to developoverseas trade in order to assist the North WestETS sector to outpace the global market growthrate up to 2015.

UKTI North West International Trade Managerfor Envirolink, Karl Susol, says,

“As part of my secondment to Envirolink I workwith businesses to help them fulfil their overseastrade objectives, whether they are novice orexperienced exporters.”

“We offer a range of support including liaisingwith commercial teams overseas to researchpotential opportunities, organising trademissions to priority markets, and attractinginward delegations of commercial officers,buyers and embassy staff to further promotegood relationships with North West businesses.”

Envirolink Northwest is developing itsinternational strategy, based on the findings of arecent study by Innovas and KMatrix, looking atthe North West ETS sector as a whole andprioritising key international markets.

Karl works with the UKTI Environment &WaterTeam in London, and a team of internationaltrade advisors in the North West, to delivertailored UKTI services for ETS businesses. InJune, for example, they jointly held a free‘Environment andWater – Meet the CommercialOfficer’ event for ten Northwest technology

and service providers in the water industry.One to one meetings were held with BritishEmbassy commercial officers from Bulgaria,China, Egypt, India, Poland, Romania andSaudi Arabia.

Karl says, “The companies always find theseevents really useful. They serve as a one-stopshop to increase their knowledge of a range oftarget markets in a single session, free ofcharge, saving them potentially months ofresearch. The events are also a great way toraise companies profiles with key staff in theEmbassies overseas, and raise the profile of theNorth West as a key region to source ETStechnologies and products.”

EVENTS AND TRADE MISSIONSA key element to the International TradeStrategy is delivering a comprehensiveprogramme of sector specific trade missions.Recent missions include the US East CoastTrade Visit for the Energy Sector and IFATMunich – the world’s largest trade fair forEnvironmental Solutions - with many moreplanned well into 2009.

Some key ETS events on the calendar include:• Pollutec, Lyon, France, December 2nd – 5th• World Future Energy Summit, Abu Dhabi,Saudi Arabia, 19th – 21st Jan ‘09

• Envirolink Northwest supporting UKTI Waterled mission to Saudi Arabia, 30th January – 4thFebruary ‘09

• Envirolink Northwest supporting UKTI Waterled mission to Romania, 19th – 23rd Jan ‘09

• Power-Gen Renewable Energy & Fuels 2008,Las Vegas, February 19th – 21st , ‘09

• Middle East Waste Summit 2009, Dubai, U.A.E,12 -14 March ‘09

If you would like to find out more about any ofthese events or about EnvirolinkNorthwest’sinternational programme please visitwww.envirolinknorthwest.co.ukorcall 01925 813200.

12


For many years there has been a vibranttrading relationship between Portugal, Spainand the UK that is even more dynamictoday. Iberia is one of the most importantexport markets for British goods andservices in the world, offering abundantopportunities for British companies. In 2007exports of good and services to Spain werevalued at £15 bn and Portugal £2 bn, makingthese countries the UK's seventh andtwenty-third largest export marketsworldwide, respectively.

British companies have a significant presencein Spain and Portugal and many householdnames are represented in sectors such aspower, transport, engineering, retail,telecommunications and ICT.

Commercial relationships between the UKand Spain go from strength to strength.Spain is the second largest country afterFrance in the EU with a population of 46 million.The Spanish government is committed toopening up the Spanish market offering manyopportunities to British exporters. Spain isfocusing on supporting the fastest growing, highvalue-added manufacturing and services fromthe UK, including ICT, Bio-tech, RenewableEnergy, Financial services and the CreativeIndustries sectors.

The UK is one of the top three most importantbusiness partners for Portugal today, andopportunities exist in a number of sectorsfrom financial services to agri-technologyand aquaculture.

Since joining the European Union, Portugal andSpain have both been major recipients ofstructural and cohesion funds, allowing them toinvest in large infrastructure projects includingdeveloping extensive motorway networks,modernising ports, constructing new bridgesand building new international airports.

With further EU structural funding likely to beavailable until 2013, future opportunities forcompanies exist in projects including theextension of the high-speed rail network furtherinto Spain and across into Portugal, the buildingof a new airport for Lisbon and the upgrading ofseveral ports across the Iberian Peninsular.

The cultural and trading history between theIberia region and Latin America, has resulted inboth countries being important gateways tothese huge markets. Portugal has strong linkswith Brazil, and similar connections betweenSpain and South America have encouragedBritish companies to use Spain as theirspringboard to the Spanish speaking LatinAmerican markets.

For companies that wish to do business in Iberiait is important to remember that personal contactand developing a close business relationshipare key factors for success. It is essential to visitthe markets regularly to develop good workingrelationships with the Iberian partner. Forcultural reasons there is a good level of businessEnglish in Portugal and business English is alsoimproving in Spain, particularly in the high techand financial sectors.

The Iberia region offers exciting opportunities foryour company. The UK Trade & InvestmentIberia team is keen to assist you by targeting twocountries as a single market. UKTI staff in theBritish Embassies and Consulates in Portugaland Spain offer a wide range of services andsupport for UK companies interested in doingbusiness in Iberia. A significant element of theteam’s work is to organise sectoral activitiesthrough missions, workshops and seminars, andthe Iberia team work closely with the BritishChambers of Commerce who are key partners inhelping UK companies to do business overseas.

More information on the services and supportthat we can provide can be found on the BritishEmbassy websites www.ukinportugal.fco.gov.ukwww.ukinspain.fco.gov.uk and on the UKTIwebsite www.uktradeinvest.gov.uk.

IBERIA

Pasco Spices & Herbs, based in Wigan, producesuperior quality natural cooking sauces, pastes,chutneys and pickles. They successfully enteredthe Portuguese market as a result of taking partin the UKTI organised Algarve Food & DrinkRoadshow in June 2006. The event gave Pascothe opportunity to meet a range of potentialdistributors as well as representatives from themain supermarkets in the Algarve and the foodservices sector. As a result, Pasco found asuitable distributor for their products and startedexporting to Portugal.

Further success was achieved this year afterPasco Spices & Herbs were invited by theBritish Ambassador to Portugal, Alex Ellis, toserve up their curries to the 700 guests attendingthe Queen’s Birthday Party at the Ambassador’sresidence in June. Not only did the guests enjoythe curries, but Pasco Spices & Herbs alsodeveloped a number of new businessopportunities to increase sales to Portugal.

Manchester based Eternity Clothing design,manufacture and supply officially licensedsport casual clothing such as T-shirts, sweatshirtsand outdoor jackets for sports clubs.

With the help from the International Trade team inUKTI Manchester, Eternity Clothing commissionedan OMIS (Overseas Market Introduction Service)from the UK Trade & Investment team in Spain.Eternity Clothing’s Managing Partner, Mr Neeraj

Takiar, commented in July 2008: "The first reportwas excellent and has given the company a hugeamount of information to help formulate a strategyfor selling to football clubs in Spain. I would addthat OMIS works best when the brief given by thecompany is very focused.”

As a result Eternity are now designing a range offashion apparel for 2 teams in the Spanish Liga,equivalent to the British Premier League

CASE STUDY :PASCO SPICES & HERBS

13

A MAJOR OPPORTUNITYFOR YOUR BUSINESSIN EUROPE

CASE STUDY : EC CONTRACTS


14

THE UK AND SOUTH AFRICANATURAL TRADING PARTNERS

South Africa represents just 3% of thecontinent’s surface area, yet it accounts forapproximately 40% of all industrial output, 25% ofGDP, over half generated electricity and 45% ofmineral production in Africa; and is the mostsophisticated free-market economy on theAfrican continent.

The UK and South Africa are natural tradingpartners, with English as the main businesslanguage and similar legal systems and businesscultures. The UK is one of the three topinvestors in South Africa, with a strong bilateraltrading relationship of over £7 billion in goodsand services. In recent years there has beensignificant investment by household Britishnames such as Barclays Bank, Rolls Royce,Cadbury's, Vodafone, Virgin Mobile andAssociated British Foods, demonstrating SouthAfrica’s potential as an investment destinationfor UK companies. And the 2010 FIFAWorldCup™ in South Africa has opened up all mannerof opportunities for UK organisations.

A range of strategic initiatives has beendeveloped by the South African Government toaccelerate development and growth, benefittingthe entire population and helping to defeatpoverty and the legacy of under-development.This is a country where opportunity outstripschallenge; and with UK Trade & Investment'ssupport UK companies are well positioned tounderstand the challenges and market

conditions and make the most of opportunitieswithin this energetic economy.

Whilst it is difficult to predict the endpoint of theglobal credit crisis, South Africa appears wellplaced to avoid the worst consequences ofthese developments. The domestic financialsector has been relatively unscathed because ithas limited exposure to subprime assets and thefrenetic round of deleveraging in majoreconomies. Banking sector regulation has beensound and gradual capital account liberalisationhas encouraged South African companies toexpand offshore in a responsible manner thathas minimised the build-up of risky investments.

The South African Government, together withthe Reserve Bank, continuously monitors thedomestic banking and financial system. Whilethere are no signs of stress in the domesticfinancial sector, the value of the Rand againstthe major currencies has fluctuated dramaticallyduring the global financial crises, and theauthorities remain alert to any undue strains andare willing to take appropriate action should theneed arise.

Taking into account South Africa’s policyframeworks and the relatively diversifiedcharacter of the domestic economy, GDP isprojected to grow by about 3.7 per cent in 2008and 3.0 per cent in 2009, before rising to 4.0 percent in 2010 and 4.3 per cent in 2011.

CASE STUDY: GREEN MEANS GOFOR NORTHWEST COMPANYNorth West company ENER-G Systems is oneorganisation who have managed to nurturebusiness in South Africa, subprimeworksuccessfully with local partners and contributeto the environment all at the same time.

The Manchester-based business is the leadshareholder in a number of major projects inSouth African cities to capture methane gasfrom landfill sites. The gas is converted intoelectricity sufficient to provide energy for severaltens of thousands of homes. ENER-G Systemshas about 70% of the landfill gas business inSouth Africa.

Harvesting methane gas for energy is anenvironmentally friendly alternative to coal aslandfill methane is renewable and if left to ventinto the atmosphere is 21 times more harmfulthan CO2.

The advanced technology captures methane tofire an internal spark ignition engine. Theelectricity is then fed into the local grid. Anexisting landfill site might provide gas forbetween 10 and 15 years.

ENER-G Systems has precisely the kind of UKexpertise that deserves exposure on aninternational platform, which is why they workclosely with UK Trade & Investment. ManagingDirector Hugh Richmond, who sits on the UKTrade & Investment Environmental ServicesAdvisory Group, enlists UK Trade & Investmentsupport whenever the company is focusing onnew markets.

"Companies should really make themselvesaware of the extensive range of services UKTrade & Investment can provide", said Hugh.He added, "We are very proud of ourinvolvement in this initiative which will provideenvironmentally beneficial technology notcurrently available in South Africa, as well asenabling local people to participate in skillstransfer and training programmes.”

For further information please contact the NorthWest International Trade TeamTel: 0845 603 7053E-mail: [email protected]

In many ways, South Africa is the ideal high growth export and investment market for UKcompanies. It has a stable business environment, a rigorous legal system and a solidfinancial structure.


15

THE ECONOMIC LANDSCAPEHAS CHANGEDIt is very likely that the UK economy entered arecession in the second half of this year. Outputfell by 0.5% in Q3, which was a little worse thanexpected in August. But since then, three factorshave transformed the outlook.First, timely indicators of economic activity havedeclined markedly. Business surveys andreports of my Agency colleagues suggested asharp fall off in demand, both at home andabroad, in September and October. Growth in Q4is likely to be materially weaker than the MPCexpected in August. And unemployment is risingat the fastest rate for 17 years.Second, following the failure of Lehman Brothersin September, the most serious banking crisissince 1914 reduced the supply of credit tobusinesses and households. Confidence wasbadly shaken.Third, the inflation outlook has changed radically.Oil and other commodity prices have more thanhalved since their recent peak and in the spaceof a few months we have gone from the highestrate of manufacturing input price inflation innearly 30 years to the lowest monthly rate onrecord. Also, a key risk highlighted by theCommittee earlier this year had been that thesharp increase in CPI inflation might causecompanies and households to revise up their

expectations of future inflation. But mostmeasures of inflation expectations have fallenback in recent months.

RECENT ECONOMIC NEWSInvestment spending by companies andhouseholds has weakened significantly –especially investment in housing – and recentbusiness surveys of investment intentions inplant and machinery have declined markedly.Turning to the world economy and UK exports,the outlook for global activity has deterioratedmarkedly in recent weeks. The IMF projectsactivity in the advanced economies contractingnext year and growth in the emergingeconomies slowing sharply. Official data suggestthat UK export growth slowed sharply in Q2while surveys suggest a markedly weakeroutlook in the near term. On the bright side, the17% decline in sterling since July 2007 willimprove the price competitiveness of UKexporters which should offset to some degreethe weaker outlook for world demand.

OUTPUT SET TO DECLINEIN THE NEAR TERMAs usual, the Bank’s forecasts are conditionedon market views of the outlook for interest rates,which in early November were for Bank Rate to

fall to 4% in late 2008 and around 2¾% in thesecond half of 2009, before picking up again to4% by 2011. They are also based on theGovernment’s fiscal policy at that time. On theMPC’s central view, a pronounced slowdown indemand pushes the economy into recessionuntil mid-2009. Nevertheless there is asubstantial stimulus from the reductions ininterest rates, a gradual expansion in the supplyof bank credit as the effects of the authorities’recapitalisation programme take hold, lowerworld energy and food prices, the lower level ofsterling and a continued expansion ingovernment spending. As a result, GDP beginsto recover in the second half of 2009, risingsomewhat above its historical average growthrate by 2011. This projection is subject tosubstantial uncertainties. The slowdown may bedeeper and longer lasting if the supply of credittightens further at home and abroad, ifhouseholds and companies make biggerbalance sheet adjustments (for example byincreasing their saving by more than expected)or if there is a larger than assumed rate of jobloss. There are also uncertainties over howrapidly and effectively reductions in Bank Ratefeed through into higher activity. But theslowdown may be less pronounced than in thecentral view if bank lending recovers morerapidly, or if there is a stronger stimulus fromfiscal policy. If either set of risks were tomaterialise, the outlook could be materiallydifferent from the central projection.

THE INFLATION OUTLOOKInflation fell back to 4.5% in October and is set tofall sharply in the near term, reflecting the rapidunwinding of these pressures. The precisespeed at which inflation declines also dependson the extent to which the sharp fall in sterling ispassed through into higher prices. But in thecentral projection, inflation falls back to the 2%target in the second half of 2009 and then movesmaterially below the target, reflecting a largermargin of spare capacity in the economy and thewaning impact on import prices from the lowerlevel of sterling.

As with the GDP projections there aresubstantial uncertainties around the centralprojection. The most significant of these relatesto the difficulty in forecasting the depth andpersistence of the slowdown in demand. Thereare also marked uncertainties over the degreeof spare capacity in the economy and its impacton inflation, prospects for commodity prices andthe inflation consequences of the weakerexchange rate.

In conclusion, the inflation outlook has changedsubstantially in recent months. But theCommittee’s approach to setting interest rateshas not. It continues to set interest rates in adeliberate, forward-looking manner in order toensure that inflation is on track to hit the inflationtarget in the medium term. That approach hasserved the UK economy well over the pasteleven years. And the Bank is confident that itwill continue to do so in these exceptional anddifficult times.

A FORWARD LOOKJohn Young the Bankof England’s Agent for the North West, explains the latestthinking of theMonetary Policy Committee (MPC) about prospects for the UK economy.

At its November meeting, the Bank’s MPC reduced interest rates by 1½% to 3%, the first timerates had been cut to that level since 1954. In October the MPC had reduced rates by ½% to4½% as part of a coordinated policy by several of the world’s central banks including the USFederal Reserve and the European Central Bank. The Bank’s latest Inflation Report, publishedon 12 November, is available on the Bank’s website atwww.bankofengland.co.uk/publications/inflationreport/index.htm


8 - 10 DECEMBERBIOTECH BUSINESS EXCHANGE AND GENESISLondon (see page 9)

9 DECEMBERLONDON 2012 FREE SEMINAR ANDWORKSHOPRheged, Penrith - 9.30am - 1pm (see page 2)

JANUARY2009TRADE VISIT TO DEWA(DUBAI ELECTRICITY&WATER AUTHORITY)

JANUARY2009NWDA SECTORMISSION TOMIDEMCannes, France

19 - 21 JANUARY2009NORTHWEST STAND AT THEWORLD FUTURE ENERGYSUMMITAbu Dhabi, UAE (see page 3)

21 JANUARY2009CBBC - THINK CHINA, ACT REGIONAL :OPPORTUNITIES FOR UK COMPANIES IN CHINA’SREGIONAL CITIES NATIONAL ROADSHOWHSBC, 4 Hardman Square, SpinningfieldsManchester - 9am - 2pm

21 - 24 JANUARY2009NWDA SECTORMISSION TO SIAT 2009(AUTOMOTIVE SECTOR)Pune, India

26 JANUARY2009BUSINESS OPPORTUNITIES INMEXICOOld Trafford, Manchester - 1pm - 4.30pm

26 - 29 JANUARY2009ARAB HEALTH EXHIBITION AND CONGRESSDubai, UAE (see page 3)

27 JANUARY2009EUROPEAID (WORKSHOP)Ramada Encore, Haydock, St Helens

27 - 30 JANUARY2009INFORMEXUSA EXHIBITION (CHEMICAL SECTOR)San Francisco

30 JANUARY2009NORTHWEST CHINA BUSINESS AWARDS& CHINESE NEW YEAR DINNERVenue to be confirmed

30 JANUARY - 7 FEBRUARY2009FINANCIAL AND PROFESSIONALSERVICES SECTOR VISIT TO INDIAMumbai and Pune (see page 10)

FEBRUARY2009UK-TURKEYENVIRONMENTALSOCIETYLAUNCHIstanbul, Turkey

16 - 19 FEBRUARY2009NWDA SECTORMISSION TOMOBILEWORLD CONGRESSBarcelona, Spain

16 - 21 FEBRUARY2009NWMARKET VISIT TO INDIAMumbai (see page 10)

23-26 FEBRUARY2009NORTHWEST STAND AT THEGULFOOD EXHIBITIONDubai, UAE (see page 3)

MARCH 2009UK-NORDIC ONCOLOGYCONFERENCECopenhagen (see page 9)

3 - 4 MARCH 2009A TASTE OF BRITAINMINI EXHIBITIONOslo, Norway

12 MARCH 2009MEET THE BUYER, HEALTH TECHNOLOGIESDaresbury Park Hotel, Warrington

17 - 22 MARCH 2009NWDA SECTORMISSION TO THESOUTH BYSOUTHWESTMUSIC EVENTAustin, Texas, USA

19 MARCH 2009TRADE VISIT TO CEBITHanover, Germany

20 APRIL 2009TRADE VISIT TO ALIMENTARIA(FOOD SECTOR)Barcelona, Spain

22 MAY2009MEET THE BUYER, SOUND CITYLiverpool - Venue to be confirmed

CALENDAR OF EVENTS, EXHIBITIONS & MARKET VISITS

FORMORE INFORMATION AND TO ACCESS ACOMPLETE PACKAGE OF PROFESSIONALINTERNATIONAL TRADE SUPPORT SERVICESFROM UKTI CALL:

THE NORTHWEST INTERNATIONAL TRADE TEAM

0845 603 [email protected]


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