Two Italian companies Leonardo and Marcegaglia are set to invest £485m into the UK, Sir Keir Starmer has announced.
The news came during a joint press conference in Rome with the Prime Minister of Italy, Georgia Meloni, as part of Sir Keir’s trip to strengthen ties on migration, trade and defence.
Aerospace firm Leonardo will plough £435m into its site in Yeovil and research across the UK this year, No 10 said, while steel manufacturer Marcegaglia is to spend £50m on a new clean steel electric arc furnace at its Sheffield site, which is expected to create 50 new jobs.
Speaking while in the Mediterranean city on Monday, Starmer said: “I’m really pleased to announce that we’ve secured two new investments.”
He added: “I am in Italy with a clear message for one of our closest international friends and partners: Britain is a place to do business.
“It is only by resetting our relationships around the world that we can break down the barriers that have been holding the UK back for so long.”
The Prime Minister described the sum as “significant” and said it would “create jobs for hardworking British people” as well as contributing to his “ultimate mission… growth”.
Leonardo, which also works in defence and security, operates eight major sites in the UK, supporting 8,000 employees.
The announcement follows a business roundtable with leading Italian CEOs in Rome this morning, who collectively support 17,500 jobs in every part of the UK, Downing Street said.
It took place at the British ambassador’s residence in Rome, with attendees including: Eni chief executive Claudio Descalzi; Snam chief executive Stefano Venier; Chiomenti partner Filippo Modulo; Pirelli boss Marco Tronchetti Provera; and Investindustrial founder and chairman Andrea Bonomi.
Chairman Stefano Pontecorvo said the firm’s investment will “support advanced research, thousands of highly skilled jobs and outstanding early careers opportunities”.
While he said he “looked forward to working closely” with Sir Keir “as we continue to invest in the UK and support the defence of Europe”.
Read more
How has Brexit impacted migration?
Chief executive and chairwoman Emma Marcegaglia said the decision was “evidence of willingness and ability to invest to grow the UK business” which was also “beneficial” to “reduce the carbon footprint of the whole group by insourcing primary steelmaking for stainless steel”.
Bilateral trade with Italy is worth some £50bn, the government added, making the NATO, G7 and EU member one of the UK’s top ten trading partners.
Starmer’s visit follows recent trips to Berlin, Paris and Dublin since taking office.
The Prime Minister also visited Italy’s national coordination centre earlier today with the UK’s newly appointed border security commander Martin Hewitt, for discussions on Italy’s reduction of irregular migration by 60 per cent compared to last year.
Britain will also contribute £4m to the Rome Process, the Italian government’s project to tackle the root causes of irregular migration, Starmer has confirmed.
While the two nations agreed to work more closely to tackle illicit cash supporting organised crime, share intelligence and disrupt maritime supply chains used by people smugglers – as well as strengthening joint defence cooperation in the Indo-Pacific region next year.