Baroness Poppy Gustafsson signs £7.5bn deal with Sumitomo of Japan for UK infrastructure and clean energy projects
Gustafsson signed the deal with Sumitomo Corporation’s Energy Transformation Group CEO Mr Hajime Mori, Europe CEO Mr Hiroyuki Koike and the Energy Transformation Business Group in Tokyo.
Sumitomo Corporation aims to facilitate the huge investment into key UK infrastructure and clean energy projects by 2035, backing the Government’s aim to significantly increase long-term business investment into key growth sectors following the publication of the Modern Industrial Strategy and the 10-Year Infrastructure Strategy.
Gustafsson said: “The UK is a top investment destination for Japanese businesses, so I’m delighted to be in Tokyo to sign this new collaboration with Sumitomo Corporation. This is yet another major vote of confidence in our economy and shows international backing for our modern Industrial Strategy, which shows our Plan for Change is working.
"We’re serious about clean energy as a key growth sector, and deals like this create high value jobs, encourage further investment into our world-leading industry and help boost economic growth right across the UK.”
The investment will be focused on key offshore wind and hydrogen projects, supporting the UK’s aim to become a clean energy superpower. Business Weekly has asked whether the East of England, strong in CleanTech and sustainable technologies, will specifically benefited.
Sumitomo appears equally excited about the new deal. Hajime Mori, Managing Executive Officer, Group CEO, Energy Transformation Business Group, Sumitomo Corporation said: "We have made active investments in several business sectors in the UK, including decarbonisation and clean energy. Under the UK's new industrial strategy, clean energy is designated as a priority sector. Through this agreement with Office for Investment, we will continue to leverage our strengths to drive growth in the clean energy sector in the UK."
Hiroyuki Koike, Managing Executive Officer, General Manager for Europe, Sumitomo Corporation added: "We are inspired by the UK government's active promotion and support of private investment which has helped to improve the business environment in many areas.
"We hope that this comprehensive MOU with the Office for Investment will further strengthen the relationship between the UK government and Sumitomo Corporation, and that we will contribute more to the development of the UK economy and society through our business."
Unlocking new investment opportunities with the Asia-Pacific (APAC) region is vital to achieving the Government's long-term trade aims: the UK-APAC trading relationship is now worth more than £135 billion.
This new collaboration also adds to the strong trade and investment partnership the UK already shares with Japan, building on the Industrial Strategy Partnership and Economic 2+2 established earlier this year and CPTPP ratification – which is estimated to boost the economy by £2 billion a year in the long-term.
• Today’s announcement came as Gustafsson visited South Korea and Japan this week, meeting a range of investors and businesses to encourage further investment into the UK.
