22 September 2009

The Mayor of London, Boris Johnson today officially opened Canon Europe's new headquarters in Stockley Park, near Heathrow. The Japanese electronics giant is consolidating some of its UK functions and moving key departments to London from the Netherlands, safeguarding nearly 300 jobs, and creating over 200 new jobs in the first year. London continues to drive foreign direct investment (FDI) into the UK, accounting for 30% of all FDI into the UK. FDI figures include new investments, expansions, mergers and acquisitions, joint ventures and R&D programmes. 9% of inward investment projects that Think London have guided have come from Japan, which will remain a key target market for inward investment into London.

This is just another in a line of many overseas businesses investing in London, continuing the capital's success story as a magnet for international investors. More than half a million people in London work in overseas-owned firms and between April 2008 and March 2009 527 foreign companies invested in projects in the city, creating and safeguarding over 11,500 jobs.

This confirms the resilience of the capital's appeal, despite the global economic downturn, and this commitment contributes more than a quarter to London's economy, generating more than £52 billion a year.

The Mayor said:"I commend Canon Europe on their taste in choosing our great capital city to establish their HQ. It demonstrates that despite the current global turmoil, London is still the premier business city of choice, thanks to our stability and innovation, a highly skilled work force, a tradition of openness, and unrivalled access to western markets. London is also an exceptional, exciting and diverse city. Its people come from every continent, country and represent every culture in the world, so from wherever you are from you will never feel far from home.

Michael Charlton, Chief Executive at Think London, added: "'We are delighted Japanese companies are continuing to choose London as a place from which to globalise their businesses. London is still Europe's largest consumer market, has a diversity of sectors, and continues to attract overseas investment. A growing number of Japanese firms are also leveraging the unique opportunity to invest and expand in London created by the current market conditions. In fact there has never been a better time to invest in London with a deeper and wider talent pool, lower commercial property costs, and the depreciation of sterling against all major currencies.'

"Over the next 10-15 years it is estimated that between 1,400 and 3.200 companies from China, Taiwan, South Korea and India may consider moving to Europe. Fewer than 40 per cent of the top 100 companies in China, India and South Korea combined have already established an HQ or significant office in Europe. Canon's decision to relocate here therefore demonstrates that we are well placed to exploit this opportunity. The main factors that have encouraged firms to move to London include:

- Political and economic stability, proximity to clients, transport and accessibility, quality and availability of labour and taxation

- Presence of other company HQs' cluster effect

- Presence of professional services firms specialised in helping companies from that country

- Inherent advantages include wide spread use of English and English contract law.

Canon Europe's headquarters will eventually be served by the new Crossrail station, Hayes and Harlington, giving staff quick access to the centre of London.