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BACK ISSUES » 2001 » OCT/NOV
Get ready for the good times

The Western Cape has never been South Africa’s economic hub, but it has been transformed into a far more dynamic region since the end of apartheid.

Inside fDi

FDI Editor Brian Caplen introduces a new Financial Times Business publication that will take a hard-hitting and in-depth look at foreign direct investment at a time when the global economy is facing some of its toughest challenges.

UK losing out to European rivals in investment deals

Ashleigh Lezard

Is the UK losing its sparkle as Europe’s most attractive FDI destination? FDI experts are divided on whether the recent fall in FDI flows to the UK is due solely to the US slowdown and is temporary or if it is part of a longer-term decline as other European countries become more attractive.

Pakistan ‘will bounce back’

Ashleigh Lezard

FDI in Pakistan will be affected by the terrorist attacks on America and the resulting military strikes on Afghanistan but not as much as was first feared.

IKEA teams up with Lithuanian furniture maker

More details are emerging of the agreement signed between IKEA, the Swedish furniture company, and Klaipedos Mediena, the largest plywood, chipboard and furniture manufacturer in Lithuania, to build a furniture factory in the coastal town of Klaipeda.

VW denies plans for Russian plant

Reports in the Russian and international press that Volkswagen is planning to build a factory that will produce up to 300,000 cars a year in Leningrad or Moscow have been denied by a VW corporate planner.

Kurt Rippohlz was adamant there was “no contract and no decision had been made”.

German Gref, Russian trade and economic development minister, told the Russian newspaper Kommersant he met VW officials during Russian President Vladimir Putin’s visit to Germany in September. “We hope the investment will be similar to the amount VW invested in the Czech Republic, which initially was about Dm30m,” he said.

In brief

China boosts FDI

FDI in China rose by 20.7% in the first nine months of this year. China is set to be one of the few countries to benefit economically from the events of September 11. It is expected to attract more FDI at the expense of its Asian neighbours because of US military action against Afghanistan. In the past few weeks it has been reported that B&Q, the furniture company, will be opening 58 stores in China, while Bayer, the German health care and chemicals group, plans to invest $3.4bn there by 2008. Bayer already employs 2200 people in China.


A vous la france

The Invest in France Agency has been launched, which aims to offer international corporations a single contact for their investment projects. Chairman Didier Lombard plans to organise a regular intra-French agency meeting and discussion forum to enhance communication between the French regions.


Agence d’Etudes et de Promotion de l’Isčre (AEPI), the investment promotion agency of the Grenoble-Isčre region of France, has produced a guide to working and living in the region for foreign business people arriving in the area. Bienvenue/Welcome provides providing practical information on moving to France, including social and leisure interests. There are approximately 212 foreign companies invested in the region.


ExxonMobil in Russia

ExxonMobil, the US oil group, has announced that a $12bn project will go ahead in the Sakhalin 1 oil field in the far east of Russia. It is undertaking a joint project with Japanese, Indian and Russian companies, and the project will be the largest foreign investment in Russia. The project will be exempt from VAT but the Russian government will receive a 35% profits tax.

National Australia Group opens second Scots centre

National Australia Group (NAG) has opened a call centre in Kilmarnock, Scotland to service customers of its European banks.

South African security sector wins Bill reprieve

The government in South Africa has been forced to change plans that would have curtailed foreign direct investment in the lucrative private security industry.

Iran moves step closer to deal with European Union

Iran could be one of the major FDI winners from the new political landscape that has emerged since September 11’s attacks in the US.

Transportation links from wales to the UK, European union and the world

World class Wales

Why do some of the world’s best known companies – such as Ford, Bosch and Sony – decide to set up operations in Wales? If you don’t know the answer then perhaps its time you found out more.

Sakhalin bridge gets go-ahead

The Russian government has approved the construction of a bridge that will connect the island of Sakhalin to the Russian mainland.

Scotland bids for innovative investment

The Scottish Executive is to launch a campaign to promote more diverse inward investment. The move is viewed as a response to the fall in Scotland’s traditional form of foreign direct investment – manufacturing.

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Ford steers clear of controversy

Ford’s controversial new Brazilian factory in Bahia has been named Project Amazon, showing that the car maker is endeavouring to promote its policy of corporate responsibility. Kyle Copas, spokesman for William McDonagh Partners, the architects that developed the land-use plan for the site, said Ford was aiming for, “regeneration and recuperation of indigenous vegetation and local species”. The site’s buildings rely on local materials and construction methods, responding to the regional climate and architectural forms.

Enthusiastic approach places Czech agency in pole position

Ashleigh Lezard

Attracting FDI to your country requires three things: enthusiasm, enthusiasm and enthusiasm. Location, incentives and infrastructure are all important but, in the end, a positive attitude is likely to count for as much, if not more.

Alex Woodfield answers questions about prospects for a legal European company and the tax advantages it could bring.

Prospects for a legal European company

In June this year, the European Parliament formally adopted the European Company Statute, which provides that a European company may be incorporated. This is a concept that has been floated for the past 30 years and now sees some true legal form. Although the statute will not come into force until June 2004, now is a good time to consider whether this new form of corporation will be of substantial benefit to the administration of a corporate group operating in the European Union.

Get ready for the good times

A worldwide slump will hit the Western Cape of South Africa hard. But, as Jonathan Katzenellenbogen reports, the region will be ready when boom replaces bust.

Case study: Senior Automotive

Excellent transport, competitive labour costs and an abundance of raw materials make a winning combination for Cape Town.

Case study: Levi Strauss

Levi is now manufacturing in South Africa, but what of currency decline and material production problems?

Risk remedy

The global economic downturn coupled with current military action by the US could give emerging market countries a financial headache. Steadier than other forms of investment in uncertain times, FDI could restore them to health, says Charles Piggott.

The return of political risk

Political risk has reappeared as a driver of investment decisions. But where one country loses, another may gain. Charles Piggott reports.

Can you make money in Poland?
Poland

Most large Polish firms already have foreign partners but there are still some investment opportunities around, particularly in the manufacturing, telecoms and financial services sectors. Charles Olivier reports.

Boardroom tips
Poland

Citibank has emerged as one of the fastest-growing banks in Poland. Charles Olivier talks to chief executive Shirish Apte.

Powered up

Latin America offers huge opportunity for investors, particularly in the energy sector. Hugh O’Shaughnessy charts the progress of some recent foreign entrants to this market and speculates on their future.

Licence to call
Jamaica

Nick Kochan reports on how a group of Irish entrepreneurs are proving the sceptics wrong about Jamaica.

The privatisation pipeline

Tens of thousands of companies around the world remain in state hands. But are governments willing to sell them and are they worth buying anyway? Charles Olivier reports.

Sewing the seeds of success

South East England is the largest regional economy in the UK and a world-beating centre for many industry, technology and science sectors.

Breaking down bureaucracy in Jamaica’s public sector

If drive and energy are key qualities for the head of a small country’s overseas promotion agency, then Patricia Francis is ideally suited to her job. This tough Jamaican says her job involves constant battles to reverse false perceptions of her island paradise. “Telling investors that you can do something here other than tourism was the challenge,” is her constant theme.

Czech Invest’s man in London

CzechInvest has gained a reputation for exciting marketing and now one of the key executives behind it has been posted to London.

New Gillette VP appointed

Gillette has appointed a new vice-president with responsibility for business development and strategic projects. Patrick Graham joins from AT Kearney, where he was responsible for global strategy practice. He will be based in Gillette’s head office in Boston.

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