Dyson said on Tuesday that it will build its new electric car in Singapore.
The group will start working in the plant in 2020, with plans for the first car to be launched in 2021.
In a memo to staff the chief executive, Jim Rowan, said that Singapore was chosen due to the “high-growth markets” and the decision was “complex, based on supply chains, access to markets, and the availability of the expertise that will help us achieve our ambitions”.
He added that despite Singapore’s “comparatively high-cost base”, there is the availability of engineering talent.
The company, which was founded by the billionaire inventor Sir James Dyson, plans for invest £2 billion into the project, including £200 million on research and development in the UK.
Dyson has said the decision to move electric car production to Singapore was nothing to do with Brexit.
James Dyson is a prominent advocate for leaving the EU and has said that leaving without a deal would “make no difference”.
This is unlike other manufacturers, who have recently warned of the negative impacts that will be caused by Brexit. BMW (ETR: BMW), Airbus (EPA: AIR) and Jaguar Land Rover have all warned against Brexit.
Jaguar boss, Ralf Speth, said that a no-deal Brexit was “horrifying”.
“Any friction at the border puts business at jeopardy,” said Speth in September.
We are absolutely firmly committed to the UK, it’s our home. But a hard Brexit will cost Jaguar Land Rover more than £1.2bn a year – it’s horrifying, wiping our profit, destroying investment in the autonomous, zero-emissions, we want to share.”
Marvin Cooke, managing director at Burnaston, said: “My view is that if Britain crashes out of the EU at the end of March we will see production stops in our factory.”
