IT is time for Scottish firms to “think about Japan”, according to the government’s new trade envoy.

Stephen Baker, who previously spent 21 years with Sony before joining Scottish Development International (SDI), was appointed to the role last month.

It was announced ahead of a trade mission to Singapore and Malaysia that the new trade envoy will identify new opportunities in Japan’s decarbonisation transition, pharmaceutical, medical technology, and food sectors.

He told the Sunday National that the opportunities for Scotland – when it comes to both trade and inward investment – could be “massive” and “transformational”.

When it comes to inward investment specifically, Baker highlighted Scotland’s clean energy potential and the £350 million investment earlier this year from Japanese firm Sumitomo into a factory at the Port of Nigg.

The Sumitomo plant will produce cables for the offshore wind sector, and will reportedly create around 330 jobs both directly and indirectly over the next 10 years. Of those, 265 will be in the Highlands and Islands including 156 manufacturing jobs on site.

On top of the jobs created, Baker – who helped broker the Sumitomo investment while at SDI – said that this kind of investment is crucial to boost capacity, but it also brings with it opportunity for home-grown Scottish firms.

“When we look at floating offshore wind, you have these subsea structures that the turbine can float on. They're massive,” he said.

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“You're talking about structures that go from 4000 tonnes up to around 8000 tonnes floating in the water.”

Baker explained: “That’s steel that needs to be brought in. It's steel that needs to be rolled. It's steel that needs to be welded. The components need to be put together and manufactured, they need to be assembled.

“It’s a massive opportunity.”

The trade envoy said he estimates that around 15,000 jobs could be supported “just for the welding that needs to be brought in for substructure manufacture and assembly”.

He added: “Each of these floating substructures needs at least four, usually six anchors, and these anchors are massive as well.

“So, there's another area. And, of course, the mooring lines that go with that and the turbine blades.

“This is where we see a massive opportunity for companies to get involved.”

(Image: Colin Mearns)

Baker said that it’s not only Sumitomo, with Marubeni – a Japanese trading company – and partners, pledging last year to invest £10 billion in clean energy projects in the UK over the next decade, including in Scotland.

The investment includes the 3.6 gigawatt Ossian floating offshore wind farm in Scotland, which will be the largest project – and, according to Baker, another huge opportunity for Scottish firms.

He added, however, that there are also “excellent opportunities for trade and partnership between Scottish and Japanese companies.

More than 10% of Scotland's international exports – excluding oil and gas – go to Asia, including Japan, where whiskey and Scottish salmon are notable examples.

But Baker also said that, in terms of trade, there are “excellent opportunities” for Scottish and Japanese companies to partner up and provide products and services in Japan.

“As one of the top four global economies by GDP, the Japanese market is large and covers all key sectors offering multiple opportunities to engage with Japan,” he said.

“There's a lot of Scottish companies that have developed deep knowledge over time, and that’s always going to be something that people appreciate.”

For Scottish companies, Baker said it is “time to think about Japan” and how it can help their business expand.