East Mids businesses in £67m RGF wins
Businesses in the East Midlands have secured six successful Regional Growth Fund (RGF) bids from the second round of funding. Among the successful bids was a £40m hand-out to Derby City, which will be used to develop a cluster of high-technology and advanced manufacturing companies.
More than 9,000 jobs are set to be created with £67m of total investment.
The Derby City bid was submitted by the business-led Derby Renaissance Board and supported by Derby City Council.
John Forkin, managing director of Marketing Derby and member of the Renaissance Board, said: "The last time Derby won government funding on such a scale was the City Challenge fund nearly 20 years ago.
"That enabled the creation of Pride Park and 10,000 jobs. The RGF fund will have a similar positive impact on Derby just when we needed it most. I believe this will result in significant inward investment coming into Derby."
Manufacturer Druck, which is based in Leicestershire, is set to develop its GE UK metrology centre with its cash injection. Through the project, the company will build a new R&D facility at Loughborough University for oil pipeline flow technologies, grow exports by enhancing existing designs and create a training academy and internship programme.
The University of Leicester; Derby City; Worksop's Usha Martin UK; Chapel-en-le-Frith-based Federal Mogul Friction Products and Disley Tissue have all been named as winning bidders.
Staffordshire's JCB, which is a member of the Derbyshire and Nottinghamshire Chamber of Commerce, also secured funding. A spokesperson for the company told Insider it would be used "to assist in the development of new engine technology".
George Cowcher, chief executive of Derbyshire and Nottinghamshire Chamber of Commerce, said: "The £40m allocated to Derby for the development of a cluster of high technology and advanced manufacturing companies will provide a real boost to the city’s economy and a solid base from which to bounce back from the economic shocks the city has suffered in recent months.
"Obviously, it’s disappointing that there was only one successful bid for Nottinghamshire, but in terms of overall value, the allocation of funding to Derbyshire and Nottinghamshire is welcome and will hopefully act as a catalyst to leverage further investment from the private sector to stimulate the growth we need to sustain and secure the economic recovery."
Once all bids have been through due diligence, up to 1,400 direct and 7,800 indirect jobs are set to be generated in the region. Funding for the region from both RGF rounds now stands at £86m, with a huge £67m chunk having been brought in from the latest announcement.
Cowcher added: "The speed at which this funding is delivered is now crucial and the projects supported by the RGF must be started as soon as possible if we are to see any real, tangible benefits in the short term."
