Hyundai set to build pounds 1.5bn chip plant in Scotland

Scotland is hoping for a big jobs boost next week from Hyundai, the giant Korean electronics group. Hyundai is set to announce plans for a pounds 1.5bn plant in Scotland's Silicon Glen which will create 1,500 new jobs.

Michael Forsyth, Scottish Secretary, is tipped to make an announcement at the Conservative Party conference in Bournemouth on Tuesday.

The Scottish Office declined to comment and a spokesman for Hyundai said: "No commitment or decision has been made. We are continuing to investigate possible sites in Europe."

However, Hyundai is thought to have been examining possible sites in Britain and the Irish Republic for a silicon chip plant. A 500-acre site at Dunfermline in Fife is understood to have emerged as one of the favourites. The Koreans were reported to have taken an outline decision in favour of Dunfermline some months ago.

The North-east was considered but ruled out because it lacked a large enough site.

The plant would be one of Scotland's biggest inward investments and an announcement at the Tory conference would bring political kudos to Mr Forsyth, easing much of the sting created by the closure of the nearby Rosyth naval base.

It would also bolster Tory claims that Scotland is fast becoming the "cutting edge" of a Britain which itself is becoming the enterprise centre of Europe.

Although Scotland has attracted much Far East and US investment to its booming electronics sector, it lost out to Wales earlier this year when another Korean firm, LG (formerly Lucky Goldstar), chose the principality for a pounds 1.7bn electronics complex employing 6,000 people - the biggest single foreign investment in western Europe.

The Scottish Office said: "At any particular time, Locate in Scotland [an inward investment-seeking agency] is in discussion with a number of companies about potential inward investment projects.

"All such discussions are commercially confidential unless and until the company chooses to make a public announcement about its plans.

"Nothing in this statement should be taken as confirming or denying that LIS is currently in discussion with any particular company."

Hyundai's Scottish plant would be part of the group's world-wide expansion plans which include the development of four semiconductor plants by the end of the century. The total investment is expected to be in the region of pounds 4bn. The company has earmarked an additional pounds 3bn for the development of non-semiconductor plants.

Daewoo, another Korean giant which already sells its cars in Britain, is also expected to build a UK manufacturing plant. It is expected to announce plans to build a research and development facility, possibly in the West Midlands, as a forerunner to a car plant. Daewoo is also considering building a pounds 750m semiconductor plant in Northern Ireland in conjunction with Texas Instruments.

The Government and its development agencies hope Korea will follow Japan with a steady flow of inward investment into the UK.

Britain already accounts for more than half of investment by Korea in western Europe.

The UK is a popular choice due to relatively low wage costs and a high level of skills.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
Ramsay Bolton in Game of Thrones
tvSeries 5, Episode 3 review
News
peoplePair enliven the Emirates bore-draw
Arts and Entertainment
tv
News
Britain's opposition Labour Party leader Ed Miliband (R) and Boris Johnson, mayor of London, talk on the Andrew Marr show in London April 26
General electionAndrew Marr forced to intervene as Boris and Miliband clash on TV
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Treasury Assistant - Accounts Assistant - London, Old Street

£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...

Ashdown Group: Business Analyst - Financial Services - City, London

£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...

SThree: Trainee Recruitment Consultant

£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...

Day In a Page

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

How a costume drama became a Sunday night staple
Miliband promises no stamp duty for first-time buyers as he pushes Tories on housing

Miliband promises no stamp duty for first-time buyers

Labour leader pushes Tories on housing
Aviation history is littered with grand failures - from the the Bristol Brabazon to Concorde - but what went wrong with the SuperJumbo?

Aviation history is littered with grand failures

But what went wrong with the SuperJumbo?
Fear of Putin, Islamists and immigration is giving rise to a new generation of Soviet-style 'iron curtains' right across Europe

Fortress Europe?

Fear of Putin, Islamists and immigration is giving rise to a new generation of 'iron curtains'
Never mind what you're wearing, it's what you're reclining on

Never mind what you're wearing

It's what you're reclining on that matters
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband

Chuka Umunna: A virus of racism runs through Ukip

The shadow business secretary on the benefits of immigration, humility – and his leader Ed Miliband
Yemen crisis: This exotic war will soon become Europe's problem

Yemen's exotic war will soon affect Europe

Terrorism and boatloads of desperate migrants will be the outcome of the Saudi air campaign, says Patrick Cockburn
Marginal Streets project aims to document voters in the run-up to the General Election

Marginal Streets project documents voters

Independent photographers Joseph Fox and Orlando Gili are uploading two portraits of constituents to their website for each day of the campaign
Game of Thrones: Visit the real-life kingdom of Westeros to see where violent history ends and telly tourism begins

The real-life kingdom of Westeros

Is there something a little uncomfortable about Game of Thrones shooting in Northern Ireland?
How to survive a social-media mauling, by the tough women of Twitter

How to survive a Twitter mauling

Mary Beard, Caroline Criado-Perez, Louise Mensch, Bunny La Roche and Courtney Barrasford reveal how to trounce the trolls
Gallipoli centenary: At dawn, the young remember the young who perished in one of the First World War's bloodiest battles

At dawn, the young remember the young

A century ago, soldiers of the Empire – many no more than boys – spilt on to Gallipoli’s beaches. On this 100th Anzac Day, there are personal, poetic tributes to their sacrifice
Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves

Follow the money as never before

Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves, reports Rupert Cornwell
Samuel West interview: The actor and director on austerity, unionisation, and not mentioning his famous parents

Samuel West interview

The actor and director on austerity, unionisation, and not mentioning his famous parents
General Election 2015: Imagine if the leading political parties were fashion labels

Imagine if the leading political parties were fashion labels

Fashion editor, Alexander Fury, on what the leaders' appearances tell us about them
Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

The architect of the HeForShe movement and head of UN Women on the world's failure to combat domestic violence