Quick-hitting stories update you on an Indian state’s growing EV
credentials; an Amazon-centered project sidelined in South Africa;
Dyson’s new HQ city; and reawakening FDI.
Today in Geneva, Switzerland, the United Nations Conference on Trade and
Development (UNCTAD) released the UNCTAD World Investment Report, which found that
global FDI flows rose by 64% from a low base in 2020 to $1.58 trillion
last year “with momentum from booming merger and acquisition (M&A)
activity and rapid growth in international project finance due to loose
financing and major infrastructure stimulus packages.” Flows to
developing economies rose 30% to $837 billion — the highest level ever
recorded, says UNCTAD — “largely due to strength in Asia, a partial recovery in Latin
America and the Caribbean and an upswing in Africa.”
UNCTAD also said the reinvested earnings component of FDI – profits
retained in foreign affiliates by multinational companies – accounted
for the bulk of the global growth, “reflecting the record rise in
corporate profits, especially in developed economies.” Despite those
profits, however, “investment by multinational companies in new projects
overseas were still one-fifth below pre-pandemic levels last year. For
developing countries, the value of greenfield announcements stayed
flat.” Those corporate profits are sure to be impacted by the proposed
introduction of a minimum tax of 15% on the foreign profits of the
largest multinational enterprises. Planned for 2023 or 2024, the reforms
aim to discourage multinationals from shifting profits to low-tax
countries. Key implications, says UNCTAD, are:
Increased tax revenues from multinationals for most countries.
Higher taxes on foreign profits of multinationals.
Potential downward pressure on new investment by multinationals.
Reduced effectiveness of low tax rates and fiscal incentives to
attract investment.
Urgent need for investment promotion agencies (IPAs) and special
economic zones (SEZs) to review investment attraction strategies.
“While the tax reforms are going to increase revenue collection for
developing countries,” said UNCTAD Secretary-General Rebeca Grynspan,
“from an investment attraction perspective they entail both
opportunities and challenges.”
The top 10 economies for FDI inflows in 2021 were:
United States
China
Hong Kong (China)
Singapore
Canada
Brazil
India
South Africa
Russia
Mexico
Compare and contrast these findings with Site Selection’s recent Global Best to Invest
rankings, where our index of factors including FDI finds only
three of the countries named above make the top 10: the U.S., Canada and
Singapore. — Adam Bruns
The International Federation of
Robotics (IFR) on Tuesday revealed in Detroit that the North
American robotics market, driven by a spate of automotive investments in EV
and battery production capacity, experienced its best quarter ever to begin
the year. “Companies from the U.S., Canada and Mexico ordered 11,595
industrial robots — up 28% compared to the first quarter of 2021,” the IFR
reported. Revenue rose by 43% and reached a value of US$664 million. “These
results are in line with a positive trend worldwide,” IFR stated.
“Preliminary data for 2021 show that 486,700 industrial robots have been
installed globally (+27% year-on-year).”
PROJECT WATCH
North Carolina
Originally announced in 2018 as a $140 million expansion, this
manufacturing investment by Seqirus, the influenza prevention business
of Australia-based CSL Limited, was completed earlier this week to
support “the formulation and fill-finish of its cell-based influenza
vaccines in pre-filled syringes for global communities. The new line has
received FDA approval and will support influenza vaccine production for
the 2022/23 Northern Hemisphere season and beyond, says Seqirus.
“According to the World Health Organization, seasonal influenza can lead
to up to 650,000 deaths globally each year,” said Steve Marlow, general
manager, Seqirus. “As one of the world’s leading influenza vaccine
manufacturers, we’re continuously looking for opportunities to advance
capabilities and support efficient, sustained supply of new and existing
technologies. Today’s milestone is evidence of that commitment.” As documented in Site Selection, the Holly
Springs manufacturing facility, the largest cell-based influenza vaccine
producer in the world and the first-of-its-kind in the U.S., was
purpose-built by Novartis through a public-private partnership
established in 2009 with the Biomedical Advanced Research and
Development Authority (BARDA). The company’s global manufacturing and
supply network supporting seasonal influenza vaccine production and
pandemic preparedness includes sites in Liverpool, UK; Parkville,
Australia; and a new facility currently under construction in
Tullamarine, Australia.
Pfizer on Monday announced this investment at its Kalamazoo, Michigan,
facility, enabling U.S.-based production in support of its COVID-19 oral
treatment, PAXLOVID. “Pfizer Global Supply has made the impossible
possible, making billions of vaccine doses and now millions of treatment
courses to help battle the deadly COVID-19 pandemic,” said Albert
Bourla, Pfizer chairman and CEO. “By increasing production at our
Michigan facility, we are both helping patients around the world and
expanding important manufacturing innovation to the U.S. This investment
builds upon our $5 billion of investments across our manufacturing and
distribution portfolio since 2017 to support the ongoing growth of U.S.
manufacturing leadership.” With this new investment, the Kalamazoo site
(which produced some of the world’s first COVID-19 vaccine doses) will
be among the world’s largest producers of active pharmaceutical
ingredients, with the capacity to produce 1,200 metric tons annually.
Pfizer also plans to expand its Modular Aseptic Processing (MAP) sterile
injectable pharmaceutical production facility in Kalamazoo, adding to an
initial investment of $450 million to build a 400,000-sq.-ft. production
facility. “Pfizer’s Kalamazoo facility has been at the forefront of
pharmaceutical manufacturing for more than 135 years through the legacy
company Upjohn,” said Pfizer Chief Global Supply Officer Mike McDermott.
“Through this expansion, we will continue to invest in the next
generation of manufacturing and supply chain resilience.”
Colliers International’s retail division announced May 31 it had helped
negotiate the headquarters move of Insomnia Cookies from suburban
Newtown Square, Pennsylvania, to center city Philadelphia, where it will
occupy three floors and feature a “store of the future” in space once
occupied by Walgreen’s until it declined to renew its lease during the
pandemic. The new HQ will welcome approximately 80 employees to a
third-floor space once home to the men’s fashion department of
Wanamaker’s Department Store. University of Pennsylvania student Seth
Berkowitz launched Insomnia Cookies in his college dorm room in 2003.
Today it boasts more than 200 locations. “This move marks a restoration
of confidence in Center City retail and a great new amenity to the
Avenue of the Arts.,” said Larry Steinberg, senior managing director –
Retail, Colliers International. “We are incredibly pleased that this
iconic building will now have an exciting occupant.”
