LG Electronics Wales Ltd, Imperial Park, Newport

On 31 March 2004 I announced that negotiations with LG Electronics concerning the recovery of public monies previously paid to the company to assist its location at Imperial Park, Newport, were successfully concluded resulting in a settlement which after making allowances for Assembly expenses on services to the buildings, has a net worth of £34m.  

The settlement agreement restricts the disclosure of information but I am pleased to be able to report that in addition to the £15m cash payment received in March 2004, ownership of a significant proportion of the development at Imperial Park, Newport, to the value of £20m,  transferred to the Welsh Assembly Government on the 30th September 2004 and a sum of up to £1m has been set aside to meet the expenses referred to above.  

Whilst the Assembly Government will continue to retain ownership of the site, the Welsh Development Agency has been appointed to manage the site on a day to day basis.

In order for LG to fully complete the remedial works to our satisfaction I have agreed to a licence for the short term occupation of the site for up to one month. This will allow them to return the site to us in a condition suitable for occupancy by a future purchaser. The licence agreement has been negotiated on commercial terms that reflect the short-term nature of the occupancy and it will generate income for the Assembly Government during this period.

Prior to the transfer, the Assembly Government had been approached by LG Electronics Wales Ltd who maintain a significant presence at Imperial Park manufacturing LCD television screens, to see if it would be prepared to lease and licence back, on a short term basis from October 2004, two of the buildings on the site to support its ongoing operations in Wales.

The request has been agreed. The terms of the lease and licence have been negotiated on commercial terms and reflect current market conditions.  

It is my intention to secure the best possible future use of the Imperial Park site that has already attracted interest from both home and abroad. To this end, a marketing strategy is currently being developed that will see Imperial Park marketed world-wide as one of the most attractive sites for industrial development in Wales.