Golden Chance to Put Itself on the Map
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Big spender Sir Terry Matthews (below) has poured £170m into DOING BUSINESS IN the Celtic Manor Resort, venue for golf’s 2010 Newport Ryder Cup FINANCIAL TIMES SPECIAL REPORT | Thursday September 30 2010 Page 4 www.ft.com/newport2010 | twitter.com/ftreports Golden chance to put itself on the map The Ryder Cup will struction workers who have too, is estimated at £70m to something about the place diverted roads and spruced £100m. The event will raise that means people feel good place one of the up the railway station. But the profile of a city of some about life when the rolling youngest cities in pre-eminent among them is 140,000 inhabitants that has mills are going at Llan- the mercurial figure of Sir sometimes been overshad- wern.” Europe under the Terry Matthews, the Welsh- owed by its neighbours Car- However, half of the 1,200- spotlight, writes Canadian telecoms tycoon. diff and Bristol. acre site is now empty. St Sir Terry, a risk-taker Newport is one of the Modwen, the Birmingham- Jonathan Guthrie with a keen understanding youngest cities in Europe, based regeneration special- of the opportunities that gaining that status only in ist, acquired 600 acres of it hen Tiger the communications revolu- 2002. The settlement has in 2004 and is working on a Woods and tion has created, has spent roots dating back to Bronze £500m-£600m scheme to cre- other top golf- a significant slice of his for- Age fishing camps but is, ate a business park, schools ers drive off at tune on building the golf in the main, the result of and public open space. Wthe Celtic Manor Resort in resort, which includes a 334- 19th-century industrialisa- There will also be a big the Usk Valley tomorrow, bedroom hotel. It sits on the tion that made it an impor- housing scheme. The main Newport, Wales will join site of the maternity hospi- tant centre for steel- road running through Llan- the golfing destinations tal where he was born. making, manufacturing and wern will be opened to the hallowed by their associa- Looking out across the coal shipping. public, relieving pressure tion with the Ryder Cup neatly manicured Ryder In the postwar era New- on the M4 motorway to the that include Louisville, Cup course, Ian Edwards, port was pre-eminently a north. Kentucky, Sotogrande in vice-president of operations steel town centred on the The site is now cleared of Spain and Rochester, New at the resort, says: “Sir huge Llanwern complex, factories, and Rupert Jose- York. Terry built the resort which opened in 1962. land, regional director of St The Ryder, which every because he wanted to put Steel-making ceased in Modwen, tells visitors that two years pits the US something back into the 2001, although the metal is it could provide a big part against Europe, has a glam- local economy. He is a pas- still processed there by of the growth of the city. our and excitement that sionate Welshman.” Corus, a subsidiary of Tata. He says: “We hope this extends beyond the world of Sir Terry has spent some Speaking of Newport’s scheme will generate 6,000 golf to a far wider popula- £50m bringing the Ryder to proud industrial heritage, jobs over 20 years and then tion. Some 150,000 people Wales. The value to the Tracey Lee, managing there should be a multiplier are expected to attend and area, where local authori- director of Newport City effect on top of that. millions more television ties have invested heavily Council, says: “There’s still Another 10,000 people viewers will watch a battle would live here.” that is never less than hard- Mr Joseland sees the fought. Ryder as a great opportu- The simple repetition of Inside this issue nity to market Glan Llyn, the phrase “at Celtic Economy Customer writes Andrew Bounds as the scheme is called, to Manor, Newport” by TV services and business Page 2 property investors and co- presenters will give the administration have thrived developers. city, located near the most as coal and steel have all Relocation guide Newport’s pitch to inves- southerly point of the bor- but disappeared, writes William Hall looks at tors and companies seeking der between Wales and Eng- Jonathan Guthrie Page 2 transport links, education headquarters or branch land, a priceless publicity and housing choices locations is centred on its boost. “We have a great Commercial Page 3 good transport links. opportunity to put New- property Public and Its position on the M4 private occupiers From the port’s name on the map,” Heritage motorway and a main rail have been attracted Romans to rapper says Sheila Davies, regener- route give easy access to by relatively low Rhys Hutchings of ation director of Newport rents, says Goldie Lookin’ Chain. the busy economic corridor Council. William Hall Page 2 (left), Newport that stretches from west The three days of the has taken it London along the Thames tournament will represent Technology New all in its Valley through Bristol and the culmination of years of industries are building stride on to Swansea. work for Newportonians, on steel’s foundation, Page 4 The nearby M5 and M50 from the greenkeepers at Joining a select group of golfing destinations that have hosted the Ryder Cup: a view of Newport, Wales Celtic Manor to the con- Continued on Page 3 2 ★ FINANCIAL TIMES THURSDAY SEPTEMBER 30 2010 Doing Business in Newport Mixed picture emerges as old industries decline Newport the second-highest gross value rates high and pay rates are Bristol but we are still easy to Economy added per head among 22 local significantly lower than those travel to.” authorities, at £19,012 a year. for the south-east of England. The hope in Newport, as else- Customer services and Less positively, rates of work- Businesses with processing where, is that private sector A449 Chepstow A4051 public administration lessness are high and the city, and contact centres in the employment will take up the A48 along with many UK settle- city include Cardiff-based slack, particularly through the A469 have thrived, drawing ments outside the prosperous motor insurer Admiral, Lloyds establishment of new busi- NewportNewport south-east of England, has suf- TSB, which is the UK’s largest nesses. Examples of local start- Ringland on a large local A468 fered badly in the recent reces- bank, and Yell, a directories ups include the server centre M4 Caerphilly workforce, writes sion. company. New Generation Data (see sepa- Warren Lane, head of HSBC’s Public administration has rate article at www.ft.com/ WALES Severn Jonathan Guthrie Wales corporate banking centre, thrived for similar reasons. The reports/newport-2010) and JoJo M4 A403 says: “We are in a difficult number crunchers of the UK’s Maman BéBé, a Mums-and- ewport is part of a economic climate, but people National Statistics organisation babies fashion business set up wider economic zone are adjusting to a ‘new nor- relocated to Newport, and the by award-winning entrepreneur A48 M5 A38 that spans the border mal’.” Fears of a double-dip city is also home to the Intellec- Laura Tenison. And Sir Terry between England recession in the UK have been tual Property Office, which Matthews, the mercurial Welsh- Nand Wales. To the city’s west, dissipating. administers UK patents. Canadian entrepreneur, runs his CardiffCardiff Portishead further into Wales, are the cities The Ryder Cup will provide a Public service employment UK-based high-tech investment of Cardiff, the capital, and good tonic for Newport, promis- has expanded broadly as a business, Wesley Clover, out of Swansea. To Newport’s east, ing to generate £100m in eco- result of a spending splurge by the Celtic Manor Resort. a short hop across the estuary nomic benefits for the city and the Labour government that lost More traditional businesses Bristol BristolBBristolristol of the River Severn, are surrounding area, according to still have much to give. They Channel the English cities of Bath and the Professional Golfers Associ- include steelwork manufacturer Clevedon A370 Bristol. ation. Another estimate of the The hope in Newport, Rowecord Engineering and Pre- Knitting this relatively pros- economic benefits for the city, as elsewhere in the mier Forest Products, a timber A38 perous zone together are the M4 by Sports Marketing Surveys, is importer operating from New- A37 UK, is that private M5 ENGLAND motorway and a main rail route, lower at £73m (see article on port Docks. “We are having our A370 both of which give speedy Page 4). sector employment best ever month, with sales of Ordnance Survey access to the Thames Valley, an The local economy was built £5.1m,” says Nigel Williams, 10km A38 mapping@ Crown economically thriving western on steel and coal. Newport will offset looming cuts PFP chairman, of the company’s copyright: AM31/10 hinterland of London. offered a large, flat coastal area performance in September. Unemployment rate Gross value added per head House prices The coastal plain on which to the south of mountainous dis- in public spending “That could be something to do % UK=100 Rebased Newport sits is densely popu- tricts rich in coal and iron ore. with the Ryder Cup”. lated by the standards of Wales, It therefore lent itself well to the power in the UK in May. A Con- The company, which expects a semi-autonomous nation establishment of steel mills and servative-led coalition govern- turnover of £50m this year, 10 100 110 within the UK that has large docks for shipping coal and fin- ment took control and is now imports 180,000 cubic metres Newport swathes of coast, mountains and ished steel.