Government announces £150m ‘advanced manufacturing’ package

The government said the investment targeted its strategies for key sectors and markets and would "expand access to information, encourage take up of new technologies and address specific challenges faced by the aerospace sector". Advanced Manufacturing describes businesses that use a high level of design or scientific skills to produce technologically complex products and processes. Because of the specialised requirements involved, these are usually goods and associated services of high value. Peter Mandelson said: "At the heart of Britain's knowledge economy is our manufacturing base. High-value, highly skilled and internationally successful businesses that have worked hard to secure a lead in hi-tech global supply chains. This practical package of measures will help equip British manufacturers, of all sizes and sectors, to take advantage of the advanced technologies and new market opportunities now shaping our low carbon industrial future. "It's about giving them the support they need to create jobs in Britain and export the best of British manufacturing design, technology, skills and innovation around the world". However, the manufacturers' organisation EEF said the announcement lacked the long-term strategic direction that it believes is vital for the sector's future competitiveness. Policy director Steve Radley said: "The government has realised the need to take a lead in rebalancing the economy by placing greater importance on high value sectors and directing new resources towards manufacturing. However the overall package of measures exposes flaws in its approach to achieving this. "Rather than concentrating scarce resources in areas that can make a real difference, today's announcement continues the trait of smaller short term measures with little strategic targeting. If the government is to put its activist ambitions into practice it will need to replace the current scattergun approach with a clearer long term framework." Commenting on the package, the CBI's head of enterprise and innovation Tim Bradshaw said: "It is good the government is recognising the value of advanced manufacturing, and we hope this package of measures will spur the development of the UK's high-tech base. "As well as being great news for the individual firms that stand to benefit from the investments announced today, there are some worthwhile measures to support companies operating in other high value manufacturing areas from aero engines to low-carbon technologies. "Investing in these technologies now will give the UK a competitive edge, and create an important market for high value exports in the future." The funding includes: • £45 million to Rolls-Royce, for four new advanced manufacturing facilities built in the UK – three in aerospace and one civil nuclear - creating and sustaining around 800 jobs; • £45 million to support Rolls-Royce-led research and technology for the development of low carbon aircraft engines • £40 million investment in SAMULET – an aerospace project focusing on productivity and environmental improvements; • £12 million to expand the Printable Electronics Centre in Sedgefield which focuses on display technology; • A £4 million expansion of the Manufacturing Advisory Service; • £500,000 to support the development of a Centre of Excellence for Silicon Design in the South West; The new Rolls-Royce advanced manufacturing plants will produce wide-chord fan blades for the Joint Strike Fighter aircraft, disks in advanced alloys for fans and turbines of aero-engines, single crystal blade castings for high temperature aero-engine turbines, and components for civil nuclear.