Hope of a brighter future for site of failed electricals firm

Mar 13 2007 By The Journal

It was yet another shocking blow to the North-East's badly battered mass manufacturing sector when, in March 2005, electronics giant LG Philips announced the closure of its Durham plant with the loss of more than 760 staff.

The Dutch-Korean company had been hacking back the workforces at its factories in Durham and Washington for over a year as it moved work to eastern Europe to save money.

It had been under growing pressure from leaner companies, and the 34-year-old plant did not have the technology to make increasingly popular plasma screen televisions.

But the site, which at its peak produced 3.5 million cathode ray tubes for televisions and employed 1,450 staff, would later hold a great deal of hope for the area.

And now civic leaders and developers have teamed up to signal the start of work on Durham's most important business regeneration scheme for years.

Mandale Park, as it is now named after its Stockton-based developer Mandale Group, is expected to create a home for about 6,000 workers and a massive boost to the local economy. The first phase, on land formerly used as the main car park, will provide 51,500sqft of speculative space comprising nine, two-storey office units, including one reserved for a creche, one three-storey office unit and a separate block designed for a café/restaurant.

On completion, the 33.5-acre site will be home to high quality office space and units for a wide range of other business activities. Some of the development on site will be based in original buildings that are to undergo conversion and refurbishment.

Building work is now well underway and the first units are almost ready for occupation with tenants lining up to move in.

Belmont Industrial Estate's prime location next to the A1(M) and a few minutes' drive from the centre of Durham, is expected to make it one of the cathedral city's most successful and sought after business locations.

Mandale Group's estates director Joe Darragh said: "Belmont is a £30m flagship project for our company and our first major development in Durham. Based on the interest being shown, we are confident it will be a huge success."

City of Durham Council's portfolio holder for economic development Coun Grenville Holland, said: "The loss of Philips was a blow to the economy of our city.

"The restoration of this site, with its promise of many extra jobs, is very welcome. Economic regeneration and enhancement throughout our district will bring many benefits to our residents, and this flagship development accords well with our long-term strategies for the welfare of Durham."

Deputy leader of Durham County Council and County Durham Development Company board director, Brian Walker, said: "This is a tremendous development, not only for the people of Durham City but for the whole of the county.

"This is just the latest of several massive job-creating developments that have been announced recently, which between them promise over 12,000 new jobs. This is a clear indication of a growing belief in County Durham's importance as a strategic location for major commercial developments."

Mandale Group has been involved in a number of large regeneration projects in the North-East, such as the Hartlepool Marina, where it built shops, offices, apartments and restaurants, and at Stockton Riverside where it developed 90,000sqft of new offices.

Picture Caption: Mandale Park launched: Civic representatives joined the Mandale Group to signal the start of work at Mandale Park. Pictured (l to r) are Mandale estates director Joe Darragh, commercial lettings Manager, John Elliott, the head of County Durham Development Companys business team, Greg Johnson, Coun Brian Walker, deputy leader of Durham County Council, John Tindale, economic and community development manager for City of Durham Council and Coun Grenville Holland, deputy leader of City of Durham Council.