RSA support maximises manufacturing
Final quarter results report published today
Scottish Enterprise awarded more than £16million in Regional Selective Assistance (RSA) grants during the final quarter of 2012/13; for planned investment that is expected to create or safeguard more than 1,300 jobs over 29 companies. The funding is expected to support capital investment of £70.9m by the recipient companies themselves.
It’s also supporting Scotland’s manufacturing sector. Around half of the firms awarded grants are in manufacturing; whether they’re making shop signs or scientific equipment.
Nick Shields is the Director of the Scottish Manufacturing Advisory Service – the arm of Scottish Enterprise that supports manufacturing. He highlighted the importance of sector support, saying: “Scottish manufacturing is a key driver for the country’s economic growth. The more productive we can help companies become, the more likely they are to invest in capital equipment, to innovate, export and grow.
“Last year we helped generate more than £20m in productivity benefits; and this latest RSA report shows that we’re also supporting the sector through direct financial assistance when appropriate.
“Manufacturing is a growth sector. Companies are looking for ways to increase their productivity RSA funding is one of the key support mechanisms we can use to help them do that.”
One of the largest grants paid out in the last quarter went to DSM Nutritional Products in Dalry, which received funding of £3.7 million. Almost £2 million went to Life Technologies Limited to support expansion in its Paisley facility, where, among other services, it makes cell culture media to support the life sciences industry.
At the other end of the scale, Contract Solutions Ltd, which makes wave guides for the telecoms, defence, aerospace, automotive and medical sectors, accepted a grant of £35,000 to help create three new jobs; and Screenplus Design Ltd accepted £40,000 to create four new positions in its screenprinting and signmaking business.
“These figures clearly demonstrate how important RSA is as a tool for helping businesses grow,” said Lena Wilson, Chief Executive of Scottish Enterprise.
“Whether it’s a large organisation seeking to invest in Scotland or a small, indigenous Scottish company looking to expand its operations; RSA is one of the key ways in which we offer support.
“I'm really pleased to see awards being made to such a diverse range of firms.”
Other grant recipients include packaging producers, brewers, digital games developers and business process outsourcing firms like WebhelpTSC, which the First Minister visited earlier this week (Wednesday 8 May).
Quarterly report summary:
Total potential RSA awarded: £16,309,500
Total potential capital expenditure supported: £70.9 million
Total potential jobs created: 1,372
Total number of jobs safeguarded: 387
Notes to editors:
Scottish Enterprise is Scotland's main economic development agency and aims to deliver a significant, lasting effect on the Scottish economy. Our role is to help identify and exploit the best opportunities for economic growth. We support ambitious Scottish companies to compete within the global marketplace and help build Scotland’s globally competitive sectors. We also work with a range of partners in the public and private sectors to attract new investment to Scotland and to help create a world-class business environment.
Regional Selective Assistance (RSA) is the main national scheme of financial assistance to industry. It provides discretionary grants to investment projects that will create and safeguard employment in areas designated for regional aid under European Community law.
Payment of RSA is made in instalments, typically over several years as job and capital expenditure targets are met. Not all projects will proceed, and nor do all accepted offers result in full payment, as projects are sometimes scaled down or abandoned before payments are made.
The figures quoted represent the maximum grant potentially payable if the project is satisfactorily completed, and not the amount actually paid to date. All job numbers are firms’ forecast figures, and are subject to change depending on future economic conditions and other factors affecting the businesses concerned.