LA-based Halon Entertainment, which provides production services for feature films and final animation for video games, is investing US$36 million to open a new studio in Glasgow. The company has done virtual production, motion capture, previsualization and visualization on films such as Transformers: Rise of the Beasts (pictured) and Disney’s Pinocchio, as well as video games such as Fortnite. 

Glasgow’s skilled animation talent, existing facilities and schools helped draw Halon to the city, said the company, adding that the new studio will boast additional production capabilities to create efficiency for global clients. The new location will create up to 250 jobs over the next three years, Halon estimates. 

“Our new Scotland studio strengthens our ability to collaborate seamlessly across time zones and deliver exceptional work to even more productions worldwide,” said president Chris Ferriter. 

Scotland’s government is welcoming the studio—and, more importantly, it’s financially supporting this expansion—as part of the country’s bid to grow creative industries within its borders. Scottish Enterprise (the national economic development agency) is giving Halon US$5 million towards the new space, and will act as an advisor on its launch. 

Opening a studio in Scotland allows Halon to take advantage of improved UK visual effects tax credits for kids TV programs and animated films—including a net 29.95% VFX spending rebate that is now exempt from the 80% cap on eligible expenses, which still applies to other projects under the Audio-Visual Expenditure Credit. 

Before the change took effect on January 1, productions in the UK would cap out of the full rebate, which caused studios to take their VFX work to other territories with better incentives. This change could attract an additional US$175 million a year on VFX spending, according to the UK Screen Alliance. 

“Together with Scottish Enterprise and Screen Scotland, the Scottish government is committed to accelerating the growth of our screen sector,” said culture secretary Angus Robertson. “Inward investment like this is a key driver of that growth, [along with] the cultural and economic opportunities that come with it—including hundreds of good, well-paying jobs.”

Creative industries in Scotland employ more than 70,000 people and contribute more than US$6.4 billion to the Scottish economy annually, according to the Scottish government.