Satellite firm bailed out by UK to be taken over by French rival

OneWeb, touted by Boris Johnson as a potential rival to Elon Musk’s Starlink, provides communications services

A satellite company part-owned by the British government is due to be taken over by an EU rival this week, dashing hopes of fostering a UK firm to rival Elon Musk’s Starlink following its taxpayer bailout at the height of the pandemic.

OneWeb, which provides services including broadband from its low-orbit satellites, will be taken over by one of its shareholders – the Paris-listed Eutelsat- in a deal that could be announced as early as Monday.

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Pro-Brexit UK regions more dependent on EU for exports, report finds

Research also reveals EU remains ‘overwhelmingly dominant’ destination for UK manufacturing exports

Brexit-supporting regions in the UK are becoming increasingly dependent on the EU for their manufacturing exports, research by the trade body Make UK has found.

The report, based on quarterly manufacturing outlook data measuring performance in output, orders, employment and investment intentions, also found the EU remains the “overwhelmingly dominant” destination for UK manufacturing exports.

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UK battles to keep Jaguar Land Rover’s planned EV production

Britain lagging behind in race to build vital large-scale and local battery factories

Britain is locked in a battle to hold on to production of Jaguar Land Rover’s future range of electric vehicles as concerns grow that the UK is falling behind in the race to build vital large-scale battery factories.

The company, which is owned by the Indian conglomerate Tata, said it continued to “explore all options” for battery supply amid reports it could build electric cars in eastern Europe.

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UK imposes sanctions on Roman Abramovich-linked steel firm Evraz

Foreign Office says company part-owned by billionaire ‘operates in sectors of strategic significance to government of Russia’

The UK government has placed sanctions on Evraz, the multinational steelmaker part-owned by the billionaire Roman Abramovich that was formerly counted among Britain’s biggest companies.

The Foreign Office said on Thursday that Evraz “operates in sectors of strategic significance to the government of Russia” and the action would “further chip away at Putin’s financial reserves and siege economy, and support Ukraine’s continued resistance”.

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Shelf shock: soaring supermarket prices shoppers find hard to swallow

From dog food to coffee, readers are reporting some basic goods’ prices are rising by far more than inflation

Inflation is rampant, and supermarket prices are no exception. Shoppers are returning to stores to find old favourites have leapt in price from one week to the next. The cost of consumer goods is spiralling at such a rate that retail analysts have coined a new term, shelf shock.

Nestlé, the owner of KitKat, Häagen-Dazs and Felix cat food, became the latest consumer goods group to warn of more pain to come on Thursday, saying it had raised prices by 5.2% in the first three months of this year and that rising production costs would force another increase soon.

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High energy-using industries fear lack of support from UK ministers

Firms say they need the kind of help that EU competitors get as gas and electricity prices soar

Britain’s strategic heavy industries have warned they risk being left high and dry by a lack of support in the government’s upcoming energy strategy, warning that failure to follow European countries’ measures to reduce gas and electricity costs will put UK businesses at risk.

The government is expected to outline long-awaited proposals this week for a once-in-a-generation drive to invest in nuclear power and possibly more onshore wind and solar power, as well as approving continued North Sea oil and gas exploration.

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‘Sticking-plaster measures’: Sunak fails to ease pain of surging costs, say firms

Hospitality, manufacturing and haulage sectors say spring statement falls far short of the help needed

The spring statement did not deliver much to help Lesters, a small but growing packaging company struggling with rising costs.

The Staffordshire-based firm’s energy bills will rise from £7,000 a month to £18,000 when the current contract runs out. Speaking after Rishi Sunak’s spring statement, Lesters’ managing director, Billy Hutchinson, said the chancellor had offered nothing to help on this key issue.

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UK asbestos maker withheld information on material’s risks, court papers show

According to documents, Cape played down dangers and lobbied for warning labels to be tempered

One of the UK’s biggest manufacturers of asbestos and the industry bodies that it co-founded historically withheld information on risks posed by the carcinogenic material, playing down the dangers while lobbying the government for product warnings to be tempered, according to documents released after a lengthy court battle.

A lawyer who acted for the Asbestos Victims Support Groups Forum UK in its fight to obtain the documents about Cape compared its behaviour to the tobacco industry’s former refusal to admit evidence of harms from smoking while its own research showed the opposite.

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Rise in Covid cases slows manufacturing in China to weakest in two years

Output is contracting as Beijing’s tough pandemic measures force some factories to shut down

Output from China’s manufacturing sector slowed to its weakest in almost two years in January as the country’s tough anti-Covid measures forced factories into temporary shutdowns.

A monthly snapshot of industry in the world’s second biggest economy showed production being hard hit by Beijing’s zero-tolerance approach to the pandemic.

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Brexit changes will add to soaring costs in 2022, warn UK manufacturers

Make UK says two-thirds of companies fear customs delays and red tape from new rules will further hamper supply chains

Manufacturers have warned that Brexit will add to soaring costs facing British industry, amid concerns that customs delays and red tape will rank among the biggest challenges for firms this year.

Make UK, the industry body representing 20,000 manufacturing firms of all sizes from across the country, said that while optimism among its members had grown, it was being undermined by the after-effects of the UK’s departure from the EU.

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Tory peer Michelle Mone secretly involved in PPE firm she referred to government

Exclusive: Leaked files suggest Mone and her husband were involved in business given £200m contracts

Leaked files appear to suggest the Conservative peer Michelle Mone and her husband, Douglas Barrowman, were secretly involved in a PPE business that was awarded more than £200m in government contracts after she referred it to the Cabinet Office.

Barrowman, an Isle of Man-based financier, may have played a central role in the business deal that enabled PPE Medpro to sell millions of masks and surgical gowns to the government at the start of the pandemic, documents suggest.

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Sony to start electric car firm as it ‘explores a commercial launch’

Tokyo-listed shares in Japanese group rise after it shows off second concept vehicle

Sony has revealed plans to start an electric car company, making it the latest electronics manufacturer to target the automotive sector.

The Japanese tech firm is “exploring a commercial launch” of electric vehicles, and will launch a new company, Sony Mobility Inc, in the spring, its chairman and president, Kenichiro Yoshida, told a news conference before the Consumer Electronics Show in the US.

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India’s ‘pencil village’ counts the cost of Covid school closures

Ukhoo village in Kashmir supplies 90% of wood used in the country’s pencils, but the industry, a major employer in the area, has seen a dramatic drop in demand

School closures in India during the pandemic have left their mark on more than the children who have seen delays to their learning. In one Kashmiri village the impact has been catastrophic on employment.

Pick up a pencil anywhere across India and it is likely to come from the poplar trees of Ukhoo.

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Food fraud and counterfeit cotton: the detectives untangling the global supply chain

Amid the complex web of international trade, proving the authenticity of a product can be near-impossible. But one company is taking the search to the atomic level

Five years ago, the textile giant Welspun found itself mired in a scandal that hinged on a single word: “Egyptian”. At the time, Welspun was manufacturing more than 45m metres of cotton sheets every year – enough to tie a ribbon around the Earth and still have fabric left over for a giant bow. It supplied acres of bed linen to the likes of Walmart and Target, and among the most expensive were those advertised as “100% Egyptian cotton”. For decades, cotton from Egypt has claimed a reputation for being the world’s finest, its fibres so long and silky that it can be spun into soft, luxurious cloth. In Welpsun’s label, the word “Egyptian” was a boast and a promise.

But the label couldn’t always be trusted, it turned out. In 2016, Target carried out an internal investigation that led to a startling discovery: roughly 750,000 of its Welspun “Egyptian cotton” sheets and pillowcases were made with an inferior kind of cotton that didn’t come from Egypt at all. After Target offered its customers refunds and ended its relationship with Welspun, the effects rippled through the industry. Other retailers, checking their bed linen, also found Welspun sheets falsely claiming to be Egyptian cotton. Walmart, which was sued by shoppers who had bought Welspun’s “Egyptian cotton” products, refused to stock Welspun sheets any more. A week after Target made its discoveries public, Welspun had lost more than $700m from its market value. It was cataclysmic for the company.

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Johnson dumps ‘amber watchlist’ plan as it emerges top adviser has quit

Proposals for tougher quarantine rules for some holidaymakers killed off after cabinet revolt

Boris Johnson has ditched plans for tougher quarantine restrictions for some holidaymakers after days of chaos, as it emerged the chief of the Joint Biosecurity Centre that advises on travel rules has departed the job leaving it “rudderless”.

After a revolt in the cabinet and a backlash from the travel industry, government sources said the prime minister would not be going ahead with proposals for a new “amber watchlist” to warn travellers which countries were at risk of turning red.

Cabinet sources said the plans were killed off by the Treasury and Department for Transport, as ministers grow in confidence about the drop in cases, which fell to 21,052 on Monday.

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Chinese-owned firm acquires UK’s largest semiconductor manufacturer

Tory MP Tom Tugendhat raises concerns about deal in light of global computer chip shortage

The UK’s largest producer of semiconductors has been acquired by the Chinese-owned manufacturer Nexperia, prompting a senior Tory MP to call for the government to review the sale to a foreign owner during an increasingly severe global shortage of computer chips.

Nexperia, a Dutch firm owned by China’s Wingtech, said on Monday that it had taken full control of Newport Wafer Fab (NWF), the UK’s largest producer of silicon chips, which are vital in products from TVs and mobile phones to cars and games consoles.

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Revealed: UK solar projects using panels from firms linked to Xinjiang forced labour

Investigation finds up to 40% of UK solar farms were built using panels from leading Chinese companies

Solar projects commissioned by the Ministry of Defence, the government’s Coal Authority, United Utilities and some of the UK’s biggest renewable energy developers are using panels made by Chinese solar companies accused of exploiting forced labour camps in Xinjiang province, a Guardian investigation has found.

Confidential industry data suggests that up to 40% of the UK’s solar farms were built using panels manufactured by China’s biggest solar panel companies, including Jinko Solar, JA Solar and Trina Solar.

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A year of Covid crisis: a glimmer of economic hope at the end of the tunnel

Twelve months after the pandemic struck the Guardian’s economic tracker reveals real risk of lasting damage

When Boris Johnson announced the first stay-at-home order, effectively shutting down whole sections of the economy, it was hoped the tide could be turned within 12 weeks. As many months later, lockdown measures are being relaxed for a third time and Britain still faces a lengthy road to recovery from the worst recession for 300 years.

As restrictions ease, the chief economist at the Bank of England, Andy Haldane, warned that despite the reopening of the economy, the risk of a “jobs equivalent of long Covid” remains for workers across the country.

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Brexit: trade survey finds 74% of British firms hit by delays with EU markets

Brexit red tape and disruption to global trade from pandemic leaves businesses ‘severely strained’

Three-quarters of British manufacturers are struggling to cope with delays in moving goods in and out of the EU amid continuing disruption caused by Brexit and the Covid pandemic, industry figures said.

Two months after the UK left the EU on trade terms agreed by Boris Johnson’s government, research from the manufacturing trade group Make UK has shown that 74% of firms in a survey of more than 200 leading industrial companies are facing delays with EU imports and exports.

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Global sales of electric cars accelerate fast in 2020 despite pandemic

Sales of electric cars rose by 43% while overall car sales slumped by a fifth last year

Global sales of electric cars accelerated fast in 2020, rising by 43% to more than 3m, despite overall car sales slumping by a fifth during the coronavirus pandemic.

Tesla was the brand selling the most electric cars, delivering almost 500,000, followed by Volkswagen. Sales of electric cars more than doubled in Europe, pushing the region past China as the world’s biggest market for them, according to data published on Tuesday by EV-volumes.com, a Sweden-based consultancy.

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