High growth emerging markets such as Brazil are changing the face of international business and are investing in business which creates jobs in other countries, according to UK Trade and Investment Minister Lord Green. He has highlighted an example in the north of England where a Brazilian company has invested £8 million in a firm in Gateshead helping it to invest in new technologies.
Vale Soluçoes em Energia (VSE), a joint venture between Brazilian mining giant Vale and the Brazilian Development Bank BNDES, took a majority shareholding in Turbo Power Systems in Gateshead in 2010 as part of its bid to invest in new technologies that could be utilised in many sectors or industries such as transport and energy, especially in Brazil. With the help of UK Trade & Investment (UKTI) and its Investment Services Team, Turbo Power Systems has now secured £1.1 million from the Government’s Regional Growth Fund.
The award forms a key part of the company’s £8 million investment in the Gateshead plant that will help safeguard and create more than 150 jobs through research and development projects between now and 2016. ‘This investment is great news for Turbo Power Systems and the North East as a whole. This project underlines the importance of supporting advanced manufacturing and innovation through the Regional Growth Fund, creating jobs, boosting skills and expertise and supporting the economy,’ explained Lord Green.
‘High Growth Markets such as Brazil are changing the face of international business. These are the world’s growing economies, which offer tomorrow’s opportunities,’ he added.
Quote from Gringos.com : “Many countries in South America are now desperate to attract overseas investment as they look to improve and grow their economies in the short to medium term. There are now opportunities available for investors to move to countries such as Brazil but what are the exact guidelines? What can you expect? Is this really for you?”
Turbo Power Systems specialises in the development and manufacture of innovative electrical motors, generators and power electronics for use in the transport, energy, industrial and defence markets. Charles Rendell, chief finance officer for Turbo Power Systems said that the firm sends its systems all over the world including North America, China, and Malaysia as well as Brazil.
‘Brazil is most definitely investing in infrastructure. As the country prepares to host the FIFA World Cup, the next Olympics and other major sporting events, infrastructure improvements are a major expenditure item so companies such as Turbo Power Systems should be looking at opportunities there,’ he added.