Member Article

Cable announces 700 North East jobs

Over 700 new North East jobs will be created and a further 450 will be safeguarded following £5.5m Regional Growth Fund investment into the region.

320 jobs have been created at automotive suppliers Gestamp Tallent Limited, at their Newton Aycliffe factory.

South Shields clothing manufacturer, J Barbour & Sons Ltd, has announced 135 new North East jobs to cater towards growing demand from China. Further positions will also be created by UK Steel Enterprise in Middlesbrough.

Business secretary Vince Cable was at Barbour’s factory to find out how the firm will spend £549,000 of RGF money to grow expanding markets.

Speaking to Bdaily, the Dr Cable said the North East had done “very well” from the Regional Growth Fund, and hoped to see further investment in its fourth stage.

When asked about how a withdrawal from the EU could impact firms in the North East, Dr Cable said: “It is important to remember that foreign direct investment in the North East has been encouraged by access to the Single Market, and I think that access should be made possible, as well as further afield in expanding markets.”

Dr Cable was lead on a tour of Barbour’s production line and customer service facilities, and was pleased to announce he was a Barbour wearer.

Brenda Readman-Bell, group finance director, J Barbour & Sons Ltd said: “We are delighted to welcome Vince Cable to Barbour and to show him how some of the funds from our Regional Growth Fund grant will be used.

“We support long term employment and commercial longevity in the North East and this grant will enable us to extend our current warehouse and factory facilities and secure additional employment opportunities.

“Barbour believes that the Regional Growth Fund support for British manufacturing and companies in the North East helps to raise the profile of Barbour as an internationally recognised brand built on quality and heritage and enables us to tell the marketplace that quality and service exists in the North East.”

Speaking to Bdaily, Ms Readman-Bell said if demand from Asian markets grew, the firm would would retain and expand production at their South Shields factory.

She added: “Barbour is a made in Great Britain brand, and the Chinese market loves that. We’ve been established since 1984 and along with our Royal Warrant, we’re in a great position to market our products to this fast growing market that wants quality British items.

“We’re committed to helping the unemployment problem in our area, and it’s particularly important that production remains in South Shields.”

Dr Cable later moved to a tour of Gestamp Tallent Limited’s Newton Aycliffe base where an RGF award of £3.75 million will enable the company to procure robot welding assembly lines to increase their capacity for chassis products for the UK and Europe.

Here, he said: “Gestamp Tallent are an integral part of the automotive supply chain, not just for the North East but for the UK and Europe. It is one of the reasons why the North East has a strong reputation for quality engineering and manufacturing – a reputation we want the area to maintain.

“Through the Regional Growth Fund, and more widely through our long term industrial strategy, government can give business the clarity and confidence to invest for the long term. That creates growth, and jobs for people here in the North East and all across the country.”

Brian Francis, CEO of Gestamp Tallent Limited added: “The Company welcomes any financial support from central government. The RGF grant will assist the Company in respect of both competitiveness and procurement of the capital equipment required to manufacture the new components. This investment will both create and safeguard jobs over the coming years.”

The third Regional Growth Fund award of £1.2 million was announced for UK Steel Enterprise (UKSE). The funding will help the organisation provide loan and equity funding for SMEs and businesses in steel areas across England. Funding could be for a variety of uses, such as new premises or equipment.

This was posted in Bdaily's Members' News section by Tom Keighley .