Business Digest
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Business Digest October 2012 Carol Taylor Arts Services Manager Arts & Business Scotland 11 Abercromby Place Edinburgh EH3 6LB 0131 556 3353 [email protected] www.aandbscotland.org.uk Arts & Business Scotland is a company limited by guarantee registered in Scotland (SC406905) and a Scottish charity (SC042631).The registered office is 11 Abercromby Place, Edinburgh, EH3 6LB. Contents Business news 3 - 10 Philanthropy 11 Arts & sponsorship news 11 - 14 Arts & Business update 15 - 16 List of sponsored arts projects / events 17 - 19 2 BUSINESS NEWS Brewers, Distillers & Food/Drink Manufacturers Indian tycoon Vijay Mallya has insisted that he does not have to do a deal with drinks giant Diageo or sell off the “family silver” to prop up his troubled airline. Mallya’s United Spirits empire, owner of distiller Whyte & Mackay, has been locked in talks with Diageo to sell a key stake in the business to the maker of Bell’s and Johnnie Walker. (The Scotsman, 29/10/12) Diageo, Scotland’s largest distillery, which makes brands such as Johnnie Walker and Bell’s has seen continuing strong growth in emerging markets offset by a weaker performance in parts of Asia and western Europe. Demand for Scotch whisky in China and for premium spirits across North America – which accounts for a third of sales – helped the spirits giant report first-quarter figures in line with expectations, despite weaker results from locations including South Korea. In the three months to 30 September, Diageo, which also makes Gordon’s gin, Guinness stout and Smirnoff vodka, saw net sales growth of 5% compared with 9% the previous year. (The Scotsman, 18/10/12) Around 1700 workers were left devastated after the owner of the Hall’s of Broxburn meat processing plant rejected two last-minute bids to save the factory. Some areas of production will cease later this month with the last worker due to leave Hall’s, a major employer in West Lothian, by February next year. (The Herald, 16/10/12) Irn-Bru manufacturer AG Barr revealed yesterday that the Takeover Panel had agreed to extend the deadline for it to announce whether or not it intends to merge with Britvic until 5pm on October 31. The drinks companies said they had sought an extension to the deadline, which had been 5pm yesterday, “to allow the boards of Britvic and AG Barr to consider further the various related aspects of the possible all-share merger.” (The Herald, 4/10/12) Edinburgh-based beer company Innis & Gunn has reported a 63% rise in turnover for 2011 to £7.5m as it made inroads into the booming craft beer scene in the US. The company, whose beer is produced by Greene King, said it has continued to expand with sales up 30% year-on-year in 2012 to the end of August. Although it did not disclose its profit numbers, the brewer said it gets 77% of its revenues, some £5.7m, from overseas, with Canada its largest market. (The Herald, 2/10/12) Energy, Oil & Gas Planners behind Scotland’s biggest offshore windfarm, which aims to create 700 permanent jobs and transform a huge area off the east coast, are seeking the green light for the project. Applications have been lodged for two farms within the Firth of Forth Wind Zone, which, despite its name, is mainly centred on an area off the Angus coast. Initially, Seagreen Wind Energy Ltd wants to build two windfarms of 75 turbines each, with a capacity of 1050 MW. A public consultation on the plans will be launched on Friday and run until December 7. (The Herald, 24/10/12) BP’s North Sea headquarters in Aberdeen have been put up for sale with a price tag of at least £57m. Although the oil group has committed to stay in the landmark building – where 1,300 staff are based, the building’s owner, Pramerica Real Estate Investors, is looking to dispose of it. (The Scotsman, 20/10/12) 3 Constructing a windfarm beside the UK’s biggest national park would be like “building a Tesco in the Grand Canyon”, conservationists have warned. A public enquiry into the Allt Duine development of 31 turbines is due to start on Monday after German energy firm RWE npower appealed a decision earlier this year by Highland Council to reject the scheme. Campaigners fear that if the original ruling is overturned it will pave the way for a host of other windfarms also being planned around the park. (The Scotsman, 18/10/12) Thousands more Scottish householders are facing higher energy bills after ScottishPower became the latest of the “big six” energy companies to announce a price increase. Consumer groups hit out after the company said bills would rise by 7% from December, adding £8 to an average customer’s monthly dual-fuel bill. Last week British Gas – owner of Scottish Gas – put its tariffs up by 6%, with similar rises from npower. Perth-based SSE has implemented a 9% increase leaving EDF and E.on, which is freezing prices this year, as the only major energy firms not to heap extra costs on consumers. (The Herald, 16/10/12) Energy giant SSE has put up £15m and Scottish Enterprise £4.3m to build a wind turbine testing facility at Hunterston in North Ayrshire, which it is hoped will ensure the rapidly growing sector create jobs in Scotland. Of the three test berths, SSE will use two to test the turbine technology of its supply chain partners, German engineer Siemens and Mitsubishi Power Systems Europe. Meanwhile, Scottish Enterprise will hold a competition to allocate the lease for the third berth with the aim of attracting a turbine manufacturer that will create jobs. (The Herald, 11/10/12) Glasgow has won a jobs boost after ScottishPower announced 340 new posts. The energy giant pledged to create customer service and middle management roles in Glasgow as it boosts its retail operations. It has agreed a three-year deal with Glasgow-based Response UK to take customer calls and, in particular, handle enquiries from households it supplies with gas and electricity. A further 40 jobs have been created to support its Home Comfort products, which includes boiler maintenance. (The Herald, 11/10/12) Plans to create hundreds of Scottish jobs could be under threat after leading wind turbine manufacturers warned David Cameron they could halt their green energy investments in the UK should his government’s support wane. Gamesa, behind proposals for a £125m plant creating 800 posts in the Port of Leith, Edinburgh, issued the warning after Chancellor George Osborne announced plans to cut subsidies to windfarms. (The Herald, 9/10/12) Engineering & Manufacturing Jee Ltd, a leading subsea engineering and training firm, is to expand its operations in Aberdeen. Yesterday it announced two new directors to help drive its strategy of quadrupling turnover to £20m by the end of 2016. Trevor Jee, managing director, said: “As part of a carefully managed growth strategy, we have plans in place to expand the Aberdeen team into new Westhill premises and open an engineering office in central London, with the potential of creating 40 jobs in the UK by the end of 2013 and a total of 150 UK jobs over the next four years.” (The Herald, 17/10/12) 4 A US vehicle parts company is to invest in a centre of excellence based in Scotland’s largest city. The expansion of AAM Europe’s Albion Automotive site will support about 80 jobs in Scotstoun, Glasgow. A manufacturing and engineering centre has been established and the company said it will invest about £3m in equipment and machinery, and research and development. (The Scotsman, 2/10/12) Finance Swiss bank UBS has unveiled plans to axe 10,000 staff and wind down its fixed income business, as it adapts to tough capital rules. UBS will focus on wealth management and a small investment bank, ditching much of the trading business that ran up $50bn (£31bn) in losses. There were reports that some staff in London turned up to find their employee cards no longer worked at the turnstile and were then escorted to human resources. (The Herald, 31/10/12) Direct Line has announced plans to cut 70 “senior leadership” roles in a move that will involve the group parting company with chief operating officer Jonathan Davidson. The company said these formed part of a programme to save £100m annually unveiled last month. However, the latest job cuts are in addition to the 900 Direct Line announced then. (The Herald, 30/10/12) Royal Bank of Scotland (RBS) has come under further pressure to sell its Citizens division in the US and make more cuts to its investment banking business. The future of Citizens was re-ignited yesterday after it emerged there had been talks between RBS and the agency in charge of the taxpayers’ stake. (The Scotsman, 24/10/12) Nationwide Building Society has become the latest institution to be linked to a bid for the 316 branches Royal Bank of Scotland was due to sell to Santander. (The Herald, 22/10/12) Tesco Bank has sparked a possible mortgage price war by taking advantage of cheap government money to launch cut-price deals. Chief executive Benny Higgins unveiled what he called “market- leading rates” after announcing that Tesco was accessing the Bank of England’s Funding for Lending Scheme. Edinburgh-based Tesco Bank is now offering two-year fixed mortgages with rates starting at 1.99%. Rates on other products are also lower, he said, adding that the bank will be launching a cash ISA before the end of the year.