British steel firm opening in Malta

British businessmen yesterday gathered at Malta's High Commission in Piccadilly to get first-hand information on the island's investment potential.

One of the businessmen said he has just taken a decision to open an export-oriented plant in Malta specialising in production of galvanised steel.

Brett Ainsworth, owner of Brecks Heating Services Ltd, said his company had already secured export contracts with Libya and the United Arab Emirates.

Initially, Mr Ainsworth said, the company would be employing 20 Maltese.

"But we are planning further expansion in future. We are now waiting for the allocation of factory space by the Malta Development Corporation."

De La Rue chief operational officer James Hussey said the experience of his multinational in Malta had been extremely positive and encouraged British investors to follow suit. "I can assure you that the island is a fantastic place to operate from," he said.

He praised the island's economic reforms over the years and the recent improvements in the telecommunications sector. Mr Hussey had words of praise for the Business Development Act, insisting that it had been a great "success story".

De La Rue last year closed its manufacturing plant in Singapore and decided to expand in Malta. De La Rue's Malta plant opened in 1975 and now employs 500 Maltese.

MDC chairman Lawrence Zammit described the meeting with British businessmen as successful.

"There were people here who had a concrete interest in investing in Malta, including three in the IT sector, solar heating and steel industry.

"There were also people who have already taken the decision to invest in Malta and are now waiting for the MDC to allocate factory space. Over the coming weeks, we are also waiting for the business plans from other British companies that are keen to come over and invest in Malta. There are a number of British investors who are now considering expanding their operations in Malta."

Mr Zammit said that EU membership was a catalyst of this development.

"Investors are telling us that they will have serious problems if Malta does not join the EU because of lack of access to the EU market and the third countries with which the EU has trade arrangements.

"Some investors have informed us that they will scale down their operations in Malta if the country decides against membership. On the other hand, investors are keen to invest more in Malta if the country joins."

There were also US investors who are looking at the possibility of using Malta as a base for the Mediterranean if it became a member.

Prime Minister Eddie Fenech Adami told the British investors that Malta would provide even better opportunities for them once it joined the EU.

He said that to date, Malta's success had depended largely on the stability and security that had been the hallmark of Malta's national development.

"This factor will be consolidated by membership. EU membership will enhance Malta's trade relations with the enlarged EU, and will provide Malta-based firms with full and immediate access to the many other countries with which the EU has concluded free trade agreements.

"EU membership will also strengthen Malta's standing in the Mediterranean, poised as we are to become the southern gateway to Europe, a hub for business activity within the Mediterranean which provides the ideal base for international companies willing to expand their business activity in Southern Europe and North Africa."

Dr Fenech Adami also said there were advantages for companies that wished to operate "from" Malta rather than "in" Malta.

"Whether it is marketing, sales and distribution, project management, customer training or after sales support, we believe that it can be done most effectively from Malta at a lower cost than most alternative solutions."