Teesside wins pounds 80m ICI plant

RUSSELL HOTTEN

The UK has fought off competition from Holland to win an pounds 80m investment by ICI to expand its plastics facility at Wilton, on Teesside.

ICI is receiving a pounds 1.9m regional selective assistance grant from the Department of Trade and Industry, which is aiming to turn Teesside into the "chemicals capital" of Europe. The DTI said the money was justified because the investment was creating 50 new jobs and safeguarding 250 more.

ICI is expanding its European capacity to make a substance called plastic polyethylene terephthalate, used extensively in bottles for carbonated drinks and other packaging, by 130,000 tonnes a year. The company estimates that demand for PET will grow at more than 10 per cent a year until at least the end of the century.

This is the third large chemicals investment in Teesside since the Government announced its chemicals initiative, an idea aimed at creating a centre of excellence in the area.

ICI had already announced an investment to expand aniline production, and DuPont, the American chemicals group, is investing in its nylon facility. Tim Eggar, industry minister, who announced the initiative earlier this year, said it aimed to bring together public and private organisations operating in the chemical sectors.

He said: "The initiative has got off to a cracking start. As these investments come to fruition, I believe a critical mass of chemical manufacturing will be reached on Teesside making it the 'silicon valley' for the chemical industry."

ICI was considering siting the facility in Holland. Mr Eggar said the RSA grant was "a substantially lower amount of state aid than we believe the Dutch were offering".

As a result of the Government's initiative to promote Teesside, Du Pont earlier this year abandoned plans to close its plant, instead announcing that it was turning the plant into the group's only supplier of nylon intermediates.

Deryk King, managing director of ICI's world-wide polyester business, said the market for PET was growing strongly. Competitors were adding new capacity to meet current product shortages, he said.

ICI already has a 100,000-tonne PET plant under construction in Fayetteville, North Carolina, due on stream in the fourth quarter of this year. The company said both plants would undergo further upgrades after construction, bringing world-wide PET capacity to nearly half a million tonnes a year by 1999.

Start your day with The Independent, sign up for daily news emails
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Software Developer / C# Developer

£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...

Neil Pavier: Management Accountant

£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...

Sheridan Maine: Commercial Accountant

£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...

Laura Norton: Project Accountant

£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...

Day In a Page

Sun, sex and an anthropological study: One British academic's summer of hell in Magaluf

Sun, sex and an anthropological study

One academic’s summer of hell in Magaluf
From Shakespeare to Rising Damp... to Vicious

Frances de la Tour's 50-year triumph

'Rising Damp' brought De la Tour such recognition that she could be forgiven if she'd never been able to move on. But at 70, she continues to flourish - and to beguile
'That Whitsun, I was late getting away...'

Ian McMillan on the Whitsun Weddings

This weekend is Whitsun, and while the festival may no longer resonate, Larkin's best-loved poem, lives on - along with the train journey at the heart of it
Kathryn Williams explores the works and influences of Sylvia Plath in a new light

Songs from the bell jar

Kathryn Williams explores the works and influences of Sylvia Plath
How one man's day in high heels showed him that Cannes must change its 'no flats' policy

One man's day in high heels

...showed him that Cannes must change its 'flats' policy
Is a quiet crusade to reform executive pay bearing fruit?

Is a quiet crusade to reform executive pay bearing fruit?

Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
The King David Hotel gives precious work to Palestinians - unless peace talks are on

King David Hotel: Palestinians not included

The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
More people moving from Australia to New Zealand than in the other direction for first time in 24 years

End of the Aussie brain drain

More people moving from Australia to New Zealand than in the other direction for first time in 24 years
Meditation is touted as a cure for mental instability but can it actually be bad for you?

Can meditation be bad for you?

Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

Australia's first-ever Eurovision entrant

Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine
Letterman's final Late Show: Laughter, but no tears, as David takes his bow after 33 years

Laughter, but no tears, as Letterman takes his bow after 33 years

Veteran talkshow host steps down to plaudits from four presidents
Ivor Novello Awards 2015: Hozier wins with anti-Catholic song 'Take Me To Church' as John Whittingdale leads praise for Black Sabbath

Hozier's 'blasphemous' song takes Novello award

Singer joins Ed Sheeran and Clean Bandit in celebration of the best in British and Irish music
Tequila gold rush: The spirit has gone from a cheap shot to a multi-billion pound product

Join the tequila gold rush

The spirit has gone from a cheap shot to a multi-billion pound product
12 best statement wallpapers

12 best statement wallpapers

Make an impact and transform a room with a conversation-starting pattern
Paul Scholes column: Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?

Paul Scholes column

Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?