Fujitsu to Invest £800M into British Business

The Japanese IT and telecom major Fujitsu is looking to ramp up investment in to the UK business of the company, at a time when foreign direct investment interests in the country appear to be weak, reports Financial Times.

The company will inject £800m ($1.2bn/€935m) to reduce deficit across its pension schemes and to help raise funds for expansionary initiatives such as employment growth and acquisitions.

The amount will be divided between three pension schemes, which could bring the total deficit of £1.6bn down by a half. The funds are expected to help the labour markets especially in the north, where the company has offices in major cities.

The company's decision comes amid concerns that the UK is increasingly becoming a less attractive destination for foreign direct investment. The United Nations had said that the country which was once considered as Europe's preferred investment destination remained at seventh place in the global league in 2012.

The UK is looking for foreign funds from Middle East countries such as Qatar, but their interests are mostly limited to asset-backed schemes.

Fujitsu is the biggest Japanese employer in the UK, with a 14000-strong workforce. In 2012, the company has added 1800 employees, a significant part of which are below the age of 25. The company is seeking to maintain the same rate of employment growth, according to the FT report.

Fujitsu's chief executive in Britain Duncan Tait pointed out that the move indicated the company's commitment to the country, adding that it is seeking infrastructure and operations investment, apart from acquisitions.

The company had invested £40m in Britain in 2012, which included a £14m for research and development. Its total investment in the past 13 years has reached £3bn.

Tait noted that the Fujitsu's business in the country was growing, making the UK arm the best performing outside Japan.