Glasgow City Region’s newly designated Investment Zone is expected to generate around £300 million in private investment and support up to 10,000 jobs over the next decade, with a strategic focus on advanced manufacturing, particularly in the space and aerospace sectors.
The initiative, backed by £160 million in government funding, underscores Glasgow’s status as a global leader in small satellite manufacturing – second only to California – with approximately 30 companies active in the industry.
Companies such as AAC Clyde Space, Spire Global, Craft Prospect, Skyrora, and Alba Orbital have driven this growth, supported by a robust local supply chain and strong academic partnerships.
Andrew Strain, Chief Technology Officer at AAC Clyde Space, noted the region’s legacy and future prospects:
“The West of Scotland has amassed an incredible amount of capability in the space industry over the past two decades, particularly in small satellite design and manufacturing. This year marks the 10th anniversary of the launch of Scotland’s first satellite UKube-1, built by Clyde Space Ltd, now part of AAC Clyde Space.”
The Investment Zone’s focus aligns with both UK and Scottish Government priorities to drive innovation, create high-skill jobs, and leverage world-class research institutions
Councillor Susan Aitken, Leader of Glasgow City Council and Chair of the Glasgow City Region Cabinet, said:
“The £160 million Investment Zone is recognition by government that Glasgow City Region is a partnership that consistently delivers, one that can power local, national and UK economic success. It provides another opportunity for the City Region to build on that record of delivery and transformation, accelerating further growth in key sectors within our innovation economy. And I’ve no doubt, that as we’ve seen with other programmes across metropolitan Glasgow, that the Investment Zone will leverage many millions of pounds of the private sector investment to take our economy to the next level.”
Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government Angela Rayner added:
“Growing the economy is the number one priority of our Plan for Change, because we want to create opportunities for communities across the UK. That’s why we have taken forward Scotland’s two Investment Zones. By building on the amazing strengths Glasgow and North East Scotland already possess, they will attract the investment and drive the growth that people deserve.”
It is hoped that the funding funding will strengthen GCR’s space and aerospace sectors, enhance the capacity to manufacture satellites and boost the construction of new rockets.
Skyrora has one of two complimentary projects within the space sector, with £36.9m combined in IZ funding.
Derek Harris, head of business development at Skyrora, said: “The Glasgow City Region Investment Zone opportunity is a game-changer, not just for Skyrora, but for the entire UK space industry.
“This investment commitment will accelerate the development of sovereign launch and propulsion capabilities, while driving innovation and creating high-skilled jobs locally and beyond and reinforcing the UK’s standing in the global space economy.”
With its established expertise and growing ecosystem, Glasgow City Region is well-positioned to cement its role as a European hub for space innovation, manufacturing, and services. In the coming months, the final IZ programme will continue to be shaped, with business cases for each of the projects being developed for approval by the government.
