News story

New £125 million fund to boost UK advanced manufacturing supply chains

A new initiative of up to £125 million is being set up to improve the global competitiveness of UK advanced manufacturing supply chains, Business Secretary Vince Cable announced today.

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

The Advanced Manufacturing Supply Chain Initiative aims to help existing UK supply chains grow and achieve world class standards while encouraging major new suppliers to come and manufacture here.

The new fund will support innovative projects in established UK advanced manufacturing sectors such as aerospace, automotive and chemicals. It will also target newer growth areas where the UK is well placed to take a global lead, such as energy renewables and other low carbon sectors.

The competitive fund will invite applications early in the new year and will be flexible in the type of support offered to successful proposals, recognising that to fulfil their potential and address market failures suppliers and supply chains may require a combination of investment in capital equipment, associated research and development and improved skills and training support.

Business Secretary Vince Cable said:

“Recent economic and natural shocks such as the ash clouds, tsunami and Japanese earthquake have shown the fragility of long distance and single source supply chains.

“I want to seize on the increased preference that big global companies are showing for co-locating key elements of their supply chains with their UK manufacturing operations.

“British suppliers have a lot to offer and we need to help them realise and develop their strengths and sell them on the international market.

“While still encouraging free trade I also want to gain maximum value for the UK by ensuring our suppliers are in the best position possible to compete for the very significant new private and public investments being made in the UK over the next few years.”

The programme will complement and work alongside other publicly funded schemes such as the Regional Growth Fund, Growth and Innovation Fund, Manufacturing Advisory Service and UK Trade and Investment to maximise impact.

Press notice: New £125 million fund to boost UK advanced manufacturing supply chains

Published 6 December 2011