Pre-budget boost for manufacturing and life sciences

The funding will go towards several companies and projects developing technology in sectors identified as key to economic growth.

This includes £7.5m to support two pharmaceutical companies who are investing a combined £84m to expand their manufacturing plants in the UK. Almac, a multinational pharmaceutical company in Northern Ireland, produces drugs to treat diseases such as cancer, heart disease and depression, while Ortho Clinical diagnostics in Pencoed, Wales, is expanding its facilities producing testing products used to identify a variety of diseases and conditions.

In a statement, chancellor of the exchequer Jeremy Hunt said: “We’re sticking with our plan by backing the industries of the future with millions of pounds of investment to make the UK a world leader in manufacturing, securing the highly-skilled jobs of the future and delivering the long-term change our country needs to deliver a brighter future for Britain.”

The government has also announced almost £73m in combined government and industry investment for automotive R&D projects to support the development of electric vehicle technology.

Supported by over £36m of government funding awarded through Advanced Propulsion Centre UK (APC) competitions, this includes four projects developing technologies for the next generation of battery electric vehicles.

APC CEO Ian Constance said: “We’re committed to building the electric vehicle supply chain in the UK. By investing in the capability and expertise in this country we will grow businesses and take decisive action towards creating zero tailpipe emission technology. Our latest R&D funding does just that.”

Further measures include almost £200m of joint government and industry funding into aerospace R&D projects, including £40m going towards a Marshall ADG Ltd led project developing zero-carbon aircraft engine technology, and around £96m is being invested in Airbus-led projects.

Funding for these projects will be delivered through the Aerospace Technology Institute (ATI) programme.

Commenting on today’s announcement, Chris White, director of the Industrial Policy Research Centre at the Manufacturing Technology Centre, said: “The Advanced Manufacturing Plan was warmly welcomed by industry following the Autumn Statement but, in the face of continued global economic headwinds, it left many manufacturers asking what comes next? [This] announcement from the chancellor answers that question.

“R&D underpins the innovation and productivity needed to boost economic growth and reduce our reliance on overseas manufacturing. The UK’s investment in this area has lagged behind other countries for too long. By setting out more substantive details, The chancellor has sent an important message of confidence which will help secure more private funding for cutting-edge projects.”

Full breakdown of the auto and aero winning projects:

Advanced Propulsion Centre Collaborative R&D projects led by:

• Nissan Technical Centre Europe: Building the UK R&D electric vehicle capability and enhancing the knowledge base in the UK EV battery industry as a whole.
• JLR: Developing a next generation EDU ‘toolkit’; a modular family of electric machines, inverters and transmissions for future vehicle platforms.
• YASA: Developing a dual inverter for regenerative braking in BEVs, enabling new vehicle designs with EV specific, optimised electronics and safety systems.
• EMPEL Systems: Developing a UK-designed and sourced innovative silicon carbide power module for use in high efficiency automotive inverters and DC-DC converters.

Advanced Propulsion Centre Scale-up Readiness Validation (SuRV2) competition funded by the Automotive Transformation Fund: 

• Integrals Power: The scale up of high-performance, low-cost Lithium Iron Phosphate (LFP) battery chemistry, that offers superior performance including high discharge rate, improved capacity retention and rate recovery, specifically in extreme temperatures.

Aerospace Technology Institute programme projects led by:

• Marshall Aerospace: Developing and testing a smart, connected liquid hydrogen (LH2) fuel system for the next generation of zero emission aircraft.
• Airbus and National Composites Centre: Developing technology which increases the production rate of carbon fibre upper covers for aircraft wings.
• Airbus: Developing ultra-efficient technologies to cut fuel burn and weight, independent of the fuel choice.
• Airbus: Developing wing design and manufacturing technologies for lighter, more efficient aircraft.
• Spirit AeroSystems: Developing technologies for the storage and integration of liquid hydrogen on large aircraft.
• Goodrich: Developing a power-dense electric propulsion motor drive system aimed at hybrid and electric aircraft including helicopters and potentially next generation single aisle planes.
• TT Electronics: Developing technology to support electrical power conversion and electric machines for future more electric and all electric aircraft operating at higher voltages.
• Safran Landing Systems: Developing new designs, methodologies, and technologies to accelerate and catalyse benefits for current and next generation landing gears.
• Phoenix Scientific Industries: Transforming the production of titanium powder via ‘cold-crucible’ gas atomisation to enable high volume production.

Today’s announcements follow £4.5bn announced in the Autumn Statement to increase investment in strategic manufacturing sectors – automotive, aerospace, life sciences and clean energy - across the UK for five years from 2025.