TEESSIDE is one of the big winners in the Government’s new Regional Growth Fund.
More than £26m will result in around £100m of capital investment and will see the creation of over 1,200 new jobs and the safeguarding of a further 1,400.
Across the whole North-east the successful applicants for a slice of £450m in the first phase of handouts say they will be able to create more than 5,200 direct jobs and more than 8,300 indirect ones.
The bare statistics show just how far Teesside has come - and how much respect it has earned along the way.
The region put in 27 bids and got funding for five while the North Eastern LEP put in 42 bids and got the go-ahead for 9.
But the fund was five times oversubscribed, so to still be on target is a proud achievement.
Key players like the LEP’s Stephen Catchpole have caught the Government’s eye and with the success of the LEP itself followed by the Enterprise Zone and now the RGF, means the Teesside model is becoming the one to follow.
On Teesside, the companies and projects awarded cash are:
East Cleveland-based Cleveland Potash, which has gained £15m towards securing a positive decision from shareholders to begin the world’s first commercial production of polyhalite, a complex mineral which can be crushed for use as an organic fertiliser, and can be developed for a range of additional uses in the fertiliser and manufacturing industries. Significant polyhalite resources are found beneath potash deposits at Boulby, with total resources estimated at over a billion tonnes lying more than 1.5 kilometres offshore. Processing of the polyhalite will require the construction of a plant here and is a multi-million pound project.
Nifco UK, which was awarded £1.65m, enabling it to enhance and expand its automotive customer base and the supply of critical components for new vehicles including Electric Vehicles. The grant will lead to £11m of capital investment, the creation of 128 new jobs and the safeguarding of a further 158.
Lotte Chemical UK has been given approval for £6.7m of RGF support towards the construction of a new Polyetheylene Terephthalate (PET) manufacturing plant to be built alongside its existing Wilton assets. The plans will see the company invest a significant amount in addition to their purchase of the assets in 2010. The project should create 55 direct new jobs, around 300 during construction plus help to safeguard around 170 existing roles in LCUK and well over 200 jobs for companies across the value chain.
AV Dawson, which will develop the Tees Multimodal Bio-Freight Terminal, a bulk handling and storage facility tailored to mass materials, with £1.2m of RGF support. The Middlesbrough company has drawn up its plans on the back of existing investment such as the Ensus plant and a number of announced renewable energy projects across Teesside.
SSI, which has secured £1.65m towards training after finalising the deal to buy Teesside Cast Products, bringing steelmaking back to the area.
Tees Valley Unlimited, the LEP for the area, worked with businesses and its public sector partners to prepare the bids. MD Stephen Catchpole said: “The level of competition in this first phase was substantial with the number of bids put forward from across the country greatly exceeding the cash available. The projects approved here will bring in millions of pounds of investment and create and safeguard hundreds of jobs, providing a much needed boost and the perfect platform for greater economic growth and stability.”
Deputy Prime Minister Nick Clegg said: “I was bowled over by the quality of the bids. This money will now help create and safeguard jobs in some of the communities worst hit by the economic downturn.”
But there is little time to draw breath. Round Two opens today and as the Gazette suggested, that round will aim to allocate the remainder of the fund - a total of nearly £1bn.
Bids to the fund are especially being encouraged from sectors that have not yet submitted bids. The closing date for round two is noon on July 1, but there may be a further smaller round if unallocated funds remain after rounds one and two.
Stephen Catchpole added: “The key thing for me is partnership working. We stand the greatest chance of securing Government support and of creating a prosperous economy for this area if we all work together to overcome the challenges we face.
“Our success in securing Regional Growth Fund cash is a good example of what can be achieved if we do just that.”
More than 100,000 new jobs will be created and safeguarded nationally.
A number of high street banks are also joining the Government in supporting microfinance through the Community Development Finance Associations. £30m of Regional Growth Fund will be matched by a further £30m from two banks.
