WIREDGOV

An American automotive company has established a new manufacturing and engineering centre of excellence in Glasgow, supporting approximately 80 jobs in Scotstoun.

The announcement by AAM Europe of the expansion of their Albion Automotive site – supported by Scottish Enterprise – follows a meeting between First Minister Alex Salmond and key representatives from their parent company last week in Chicago.

The First Minister said the decision reflected the strengths of the Scottish engineering industry and described it as "great news for Glasgow".

The company is investing a total of £3.6 million in new capital equipment, machinery and R&D that will allow it to respond to changing market conditions within the automotive sector and add new business with automotive producers in the UK. The project is being supported by a package of financial support from Scottish Enterprise, which includes a regional selective assistance grant of £480,000 and a research and development grant of £94,000.

The AAM Europe announcement is the latest in a series of business announcements relating to the First Minister’s Chicago visit.

• Global company Sigma Aldrich last week announced that they are expanding their operations in Scotland, with the development of a new powder manufacturing facility on their Irvine site - supported by a £1.5 million grant from Scottish Enterprise
• The First Minister yesterday confirmed work has begun on GE's £9 million oil and gas centre of excellence in Montrose
• Airdrie-based potato producer Albert Bartlett has announced a deal to supply American supermarket giant Walmart with its Rooster brand

First Minister Alex Salmond said:

"Scotland has an established reputation for excellence in engineering, product and process design and AAM Europe's decision to establish a new manufacturing and engineering centre supporting 80 jobs in Glasgow highlights their commitment to the city and the local workforce, and takes forward over 100 years of Scottish engineering and motoring history under the Albion name.

"The Scottish Government and Scottish Development International continue to do all we can to secure new jobs and investment to Scotland. The company's decision to expand their operations reflects the strength of our engineering industry and I wish the company and its employees continued success."

AAM Europe Executive Director, Government Affairs and Community Relations, William A. Smith, said:

"It has been a pleasure for the AAM team to work with the Scottish Development International and Scottish Enterprise in obtaining support for our new business in Scotland.

"With their excellent support in obtaining RSA and R&D grants, AAM Europe has been able to add important new business to our portfolio."

The announcement comes as the First Minister returns from the US, where he and Scottish Enterprise chief executive Lena Wilson met with key representatives of American Axle & Manufacturing as part of the Scottish trade mission. Scottish Enterprise has been working with the company to identify how it can support the company to respond to new market opportunities and address existing challenges at its Scotstoun site.

Lena Wilson, chief executive of Scottish Enterprise, said:

"We know that economic conditions remain tough for many businesses but AAM is a great example of a company which has recognised the need to invest in new R&D and new equipment to ensure it remains competitive and it can expand its customer base.

"Our R&D and RSA grants are a key tool in encouraging companies to take that plunge and invest in new growth opportunities but equally important is the ongoing advice and support we can offer through our specialist advisors in Scotland and the work of our colleagues in SDI in the USA to attract this investment from AAM in the Scottish site."

The First Minister also represented Scotland at the handover ceremony of the Ryder Cup – which is expected to contribute £100 million to the local and Scottish economy during the tournament week alone when it comes to Gleneagles in 2014 – as well as delivering a keynote speech to the Chicago Council on Global Affairs and meeting city mayor Rahm Emanuel.

AAM Europe’s investment in its Glasgow site will be supported by a package of financial support from Scottish Enterprise, which includes a regional selective assistance grant of £480,000 and a research and development grant of £94,000. The new manufacturing and engineering centre of excellence – supported by Scottish Enterprise – will increase the company’s capabilities in product and process design and allow it to refocus on new opportunities in the passenger vehicle market. The company has recruited approximately 40 new jobs at its site in the past year, while the project will also safeguard approximately 35 jobs.