One North East today unveiled a multi-million package of support for Tees Valley businesses with the potential to create and safeguard 573 jobs.

 

The regional development agency approved almost £7.5m of investments in five companies across the Tees Valley that will create 237 new jobs and safeguard a further 336 catalysing investment of £140m in Tees Valley.

 

The funding is part of the £60 million investment for the North East announced by the Business Secretary Lord Mandelson in December 2009 to support the region’s industrial transition to low carbon and advanced manufacturing.

 

The most recent approvals bring the total investment made in the area through the Tees Valley Industrial Programme (TVIP) to almost £20m in just three months since the programme’s launch.  This will result in the creation of over 1200 jobs, safeguard a further 1100 jobs, catalyse £180m business investment and help create almost 700 new businesses.

 

Companies benefiting from the additional investments include:

 

£2m into MSD Biologics UK Ltd (formerly Avecia), based in Billingham – creating up to 75 jobs over the next 3-5 years. The investment will allow the manufacturer of high-quality, technologically advanced biopharmaceuticals to upgrade its commercial manufacturing facility (ABC5000).

 

£2m into PYReco, based in Wilton – creating 52 jobs. The investment will help fund the development of a new processing plant for the reclamation and recycling of tyres and rubber to recover carbon black, steel and oil. The project is also expected to create 240 construction jobs over the next five years.

 

£1.34m into GrowHow, based in Billingham – helping to safeguard the future of the site, which currently employs 200 people. The investment will allow the fertiliser manufacturer to press ahead with a £9m project to slash Nitrous Oxide emissions at its plant. Around 50 construction jobs will also be created by the project.

 

£621,600 for BOC, based in Tees Dock, Middlesbrough – safeguarding 40 jobs at the industrial gases manufacturer through the first of our energy efficiency grants to upgrade and modify the Air Separation Unit with the installation of a hydrogen trailer filler facility.

 

£1.5m into Billingham-based Tees Alliance Group, building on the Department for Energy and Climate Change’s earlier investment to help the company supply the offshore wind industry, creating 110 new jobs and safeguarding a further 33.  Total employment linked to the project is estimated at over 400.

 

Steve Bagshaw, Site General Manager at MSD Billingham said: “The support from One North East will enable us to further develop our capabilities to ensure that we are the biomanufacturing partner of choice for companies developing novel medicines in the global healthcare market.”

 

One North East Director of Business and Industry, Ian Williams, said: “These are the most recent companies to benefit from this programme and we will continue to work on significant investment opportunities that continue to create more jobs in the Tees Valley in the coming months.

 

“TVIP has allowed the agency and our public sector partners in the Tees Valley to act quickly and decisively to support projects that are creating and safeguarding a significant number of high-quality jobs in the Tees Valley.

“The acceleration of these important projects will not only create a large number of employment opportunities, it will also help the Tees Valley maintain its reputation as a location for pioneering businesses operating at the forefront of UK industry.”

 

Mike Huggon, Managing Director, BOC UK & Ireland, said: “BOC is committed to playing a key part in the region’s industrial future. This investment will help us align our production and distribution networks more closely to current and future requirements on Teesside. BOC appreciates the support of One North East, NEPIC and Tees Valley Regeneration in enabling this to be carried out in a timely manner.”

 

Business Secretary Lord Mandelson said: “The Government remains steadfast in its support for the North East. Through the £60 million package the Government is boosting low carbon manufacturing and seeing the North East economy thrive. The investments being made in these companies today and the jobs being secured and created will contribute to the region’s industrial future.”

 

North East Regional Minister Nick Brown said: “TVIP is the result of Government’s £60m package designed to support the Tees Valley and underpin the transition to a low carbon economy. I am pleased to see this significant support being put to practical use swiftly to create and safeguard 573 jobs. One North East will continue to drive this programme forward to create further jobs and opportunities for economic growth.”

 

Anthony Carter, Chairman of PYReco said: “The award under this funding initiative will accelerate PYReco’s development and we welcome the opportunity to become a part of the Tees Valley’s ambitious plans to be the “Green Technology Hub” of the UK economy.”

 

Alongside the significant TVIP investments made so far, in the past week, One North East has also announced a number of other investments to create jobs and further support the Tees Valley economy. Examples include:

 

£95,000 Grant for Business Investment to Tees Precision Engineering in Middlesbrough – created 21 new jobs with the new company start-up.

 

PD&MS Energy is creating up to 27 new skilled jobs with the help of a £185,000 TVIP grant. The company provides specialist engineering design and draughting services primarily to the offshore engineering industry

Specialist gas-to-liquids company Compact GTL has been offered a grant of £85,000 to create 10 new jobs at its Wilton plant.

 

Global engineering and construction provider, Aker Solutions is recruiting up to 100 new staff in its Stockton offices. With the support of a £1.4m GBI from One North East - Aker Solutions is going from strength to strength and the company is considering CVs from former Corus TCP employees as part of its recruitment drive.

Plastic recycling firm Greenstar WES has been offered £50,000 to upgrade its electricity supply to enable its £4m expansion operation.

 

Cummins Ltd is safeguarding and creating jobs as it embarks on a project to create the next generation of clean diesel engines. The firm has been awarded a Large Company R&D Grant to fund the project.
Hartlepool-based TMD Friction has been awarded £400,000 to create and safeguard jobs by expanding its manufacturing plant.

The two-year Tees Valley Industrial Programme was created to accelerate the Tees Valley’s transition towards a low carbon and advanced manufacturing economy. It is a £60m programme is supported by the Government with 50 percent of the funding coming from the Department of Business Industry and Skills.

TVIP has already announced:

 

£2.4m package of support for engineering apprentices. Around 150 apprentices in the Tees Valley will receive help over the next years, including 65 from Corus.

 

£1.4m to help business start-ups and supporting existing firms that will create and safeguard 400 jobs.

 

£1.5m in ERDF funding to extend enterprise coaching services as part of the Local Enterprise Growth Initiative (LEGI). The initiative aims to help increase numbers of new start-up businesses by 300 a year.

 

£5m to help Tees Valley companies improve their resource efficiency. The project will lever in £25-30m private sector investment and safeguard 500 jobs.

 

Tees Valley Unlimited Chair Hugh Lang said: “What is remarkable is the commitment of all partners to identify the projects—many of which have been under development for some time—and use the funding available through the Tees Valley Industrial programme to provide a response to the immediate challenges arising from the Corus situation—and encourage the kind of businesses we need to establish our position as a centre of excellence for the industries of the future, such as the recycling and renewable sectors and the wider low carbon economy.

 

“The investments already made provide a great springboard for turning our ambitions for a vibrant and diverse Tees Valley economy into reality.”

 

Dr Stan Higgins of NEPIC was delighted to receive the news that so many industrial projects have received approval in such a quick time. He said:

 

“The speed with which these projects have been approved will be very much welcomed by our local stakeholders and businesses. There are many hurdles to overcome to deliver public sector support at this level to industry and I thank One North East in particular for their work on that. Hopefully the Teesside public will understand that we have been working tirelessly with regional partners and companies concerned to discover how best to support key industrial projects. I must congratulate my industrial colleagues for the collaborative work they have done to get this far. I hope there will be even more good news in the near future.”