CAITHNESS has clinched its first major Japanese inward investment with the help of a #7.2m funding package from Highlands and Islands Enterprise (HIE).
The deal, which involves three major hi-tech companies, is for the development of a #12m battery-cell production plant in Thurso, near the Dounreay nuclear plant.
The joint venture between the UK's AEA Technology and the Japanese companies of Mitsubishi Materials and Japan Storage Battery Company (JSBC) is expected to create 130 jobs within three years.
The funding assistance was channelled through Caithness and Sutherland Enterprise and includes #2.9m in grants and a #400,000 loan. HIE will also build a 4000sq metre factory at a cost of #3.9m, which will then be leased back to the new company on an ongoing basis.
Mr Andrew Jarvie of HIE said the high level of financial support, which accounts for 60% of the total project cost, was justified by the plant's potential to reduce unemployment levels of 6.6% in Thurso and 9% in Wick.
''Production of these batteries has grown from 35 million cells in 1995 to 250 million cells last year, but demand is still outstripping supply,'' Mr Jarvie said. ''This is a chance for us to get in on a blossoming market.
''We can also use this as an example to get further hi-tech jobs into the area.''
The new company, AGM Batteries, will produce specialist lithium-ion portable batteries for sectors such as medical equipment and telecommunications devices. This market is worth about #150m annually, and the company hopes to secure at least #30m of this business within the next three years.
AEA chief executive Peter Watson said most of the new jobs would be highly-skilled positions. The company employs 200 people nearby at Dounreay. ''This isn't rough, shop-floor stuff,'' Mr Watson said. ''Most of what we are talking about is engineers overseeing production. The quality of the jobs is high.''
AEA developed and patented the lithium-ion technology at its battery development centre in Oxfordshire, one of several proposed locations for AGM Batteries. This technology is licensed to 16 companies in Japan, Korea, and the USA.
AEA is investing up to #2m cash into the venture, and will thus own 55% of the new company. JSBC, the world's leader in producing lithium-ion batteries, will have a 25% stake in AGM Batteries.
The remaining 20% will belong to Mitsubishi, which supplies the raw materials needed to make lithium-ion cells. The company is also involved in recycling these products, and is said to be interested in setting up such an operation in Thurso.
AGM Batteries could be up and running at the Burnside business enterprise park by this time next year.
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