Full steam ahead: PM to announce £400m worth of deals for trains, planes and submarines as he unlocks major opportunity for UK businesses at G20 summit
Prime Minister set to arrive in South Africa today ahead of the G20 summit, to drive forward growth and opportunity across the United Kingdom.
- Prime Minister set to arrive in South Africa today ahead of the G20 summit, to drive forward growth and opportunity across the United Kingdom
- More than £400 million worth of export deals set to be unveiled as Prime Minister delivers for working people at home
- Comes as UK expertise lays the tracks for future deals down the line with rapidly growing markets, boosting jobs, opportunity and skills at home in the UK
British workers are set to benefit from a series of international deals that will see the UK will build and maintain trains, planes and submarines across the world.
It comes as the Prime Minister travels to South Africa for the G20 summit in Johannesburg, where he will continue his campaign to open new opportunities for British companies and create jobs to put money in the pockets of working people.
The Prime Minister is expected to meet a string of Indo-Pacific and African leaders during the summit, as he continues to push for UK access to rapidly growing markets to benefit businesses up and down the United Kingdom.
The Prime Minister will visit a train depot in Johannesburg today [FRIDAY], where he will see Derby-built trains in action, and announce a new agreement between the UK and South Africa to provide British expertise to help reform South Africa’s rail system. Crossrail International – owned by the UK Government- will provide strategic advice and consultancy services to drive private investment into South African railways, maximise social, economic and environmental benefits, and bolster opportunities for British companies in both freight and passenger rail in South Africa.
Along the same track, the UK and Vietnam have today announced a landmark partnership to drive a digital transformation across Vietnam’s railways. The initiative will see the UK support Vietnam’s Ministry of Construction in delivering high-tech, sustainable rail networks, allowing Vietnam to draw on the UK’s world-class experience and expertise in creating digital strategies that contributed to the success of the Elizabeth line project.
The agreement, building on long-term relationships between Crossrail International and the urban rail authorities in Hanoi and Ho Chi Minh City, will give UK consulting, engineering and finance firms a platform in one of Asia’s fastest-growing markets.
It comes as the Prime Minister also announces that British Steel is supplying a further £35m of products into G20-partner Türkiye’s high-speed rail network. This is in addition to the similar sized supply agreement the company announced last year for the project connecting Mersin with the cities of Adana, Osmaniye and Gaziantep in southern Turkey.
Prime Minister Keir Starmer said:
“Working with international partners to deliver jobs and opportunity at home is a one-way ticket to growth.
“The UK is a world leader in engineering, from steel welders in Scunthorpe to technicians in Derby, British workers are powering the world through their skill and profession.
“I am determined to open more doors for British businesses across the world so together we can drive growth, create highly skilled jobs to drive down the cost of living, and deliver opportunity to people across the United Kingdom.”
British Steel’s Chief Commercial Officer Lisa Coulson said:
“We are proud to have already delivered £30m of our rail products into high-speed projects to help decarbonise travel in Türkiye and are delighted to be building upon this with a new supply agreement.
“Securing these prestigious contracts – with the support of UK Export Finance – was a major achievement and underlines British Steel’s ability to build the sustainable track systems of the future.
“We’re extremely grateful for the UK government’s support and are confident our partnership with the operators of Türkiye’s rail infrastructure will shortly secure additional orders and create new jobs in Scunthorpe.”
And in a deal that will see a £370m package of air deals take off with Algeria, the Prime Minister will also announce that UK firm Rolls Royce will supply new jet engines to Air Algerie.
Manufactured in Derby, where Rolls Royce employ 14,500 people, the contract will see the company provide and service UK-made engines for 10 aircraft through the lifetime of the project.
From high-speed rail to stealth submarines, the Prime Minister will also announce that the UK has won an initial contract to assist the South African Navy in assessing the operational readiness of their Type 209 submarines and undertaking the deep maintenance of at least one of those submarines. This marks British defence firm Babcock’s first defence contract in South Africa.
And in a major boost to the British economy, the UK and South Africa will also cut red tape and reduce trade friction with a new Authorised Economic Operator Mutual Recognition Arrangement to unlock opportunity for businesses in both nations.
Meeting African and British business leaders in Johannesburg this afternoon, the Prime Minister will herald the new agreement, which is estimated to add between £400m and £700m in additional export economies to UK businesses over the next five years.
A first of its kind agreement between the UK and an African nation, the move paves the way for further agreements with countries across the continent. Africa presents unparalleled future opportunities for UK businesses, with 50% of Africans under the age of 20, and more than 25% of the world’s population set to live in Africa by 2050 - making Africa the home to both the consumers and the workers who will power 21st century growth.
Trade between the UK and South Africa totals nearly £12 billion a year, and the new agreement will make trade simpler, quicker, and more reliable for accredited businesses. Almost 600 UK businesses will be able to benefit from the move, including BMW and Chivas Brothers - Pernod Ricard’s Scottish whisky producer, while a further 99 South African exporters to the UK, including Harntech and Chebo-Pele, will also reap rewards from the arrangement.
Meanwhile, the UK and South Africa will also boost financial cooperation with a Lloyds syndicate in Johannesburg expanding the reach of the London insurance market and diversifying insurance options for South African businesses. The Lloyds syndicate will be the first of its kind to establish under-writing capability on the ground anywhere outside the UK.
The UK Government is also launching new partnerships in South Africa with Anglo American, Telkom, and the Johannesburg Stock Exchange which will unlock investment, promote economic inclusion, and create opportunities for UK firms.
Further afield, leading UK education firm Pearson has announced it has exported £50m of exports to G20-partner, Brazil. The company will deliver English language training, corporate and higher education services, digital platforms, and assessment products to key Brazilian partners, strengthening global education ties between the UK and Brazil.