Member Article

North East secures £57 million from Regional Growth Fund

A total of 11 projects in the North East will share £57 million of funding from round 5 of the Regional Growth Fund, it has been announced.

The winning bidders in the region include:

• Cleveland Potash Limited in Loftus, Redcar and Cleveland
• Cummins Ltd in Darlington
• Fine Industries Limited in Middlesbrough
• Gestamp Tallent Limited in Newton Aycliffe
• Huntsman Polyurethanes (UK) Ltd in the Tees Valley
• Hydram Engineering Limited in County Durham
• JDR Cable Systems Limited in Hartlepool
• Johnson Matthey Davy Technologies Limited in Stockton-on-Tees
• The Trinity Mirror Group, BE Group and UNW LLP funding collaboration, Let’s Grow in the North East
• Tinsley Special Products Limited in Peterlee
• TRW Systems Ltd in Sunderland

The round five tranche brings the total RGF investment in the region to £320 million with an estimated private sector input of £1.6 billion.

One of this round’s winners, Chilton-based Hydram Engineering Ltd, are suppliers of sheet metal components, assemblies and fabrications.

Hydram’s managing director, David Greatorex said: “The RGF investment has resulted in far greater benefits than the company originally envisaged. This latest round of investment would not have been possible without the support of the Regional Growth Fund.

“This support has allowed the business to take full advantage of current opportunities for growth within our sector.”

£4.9 million of this round will help unlock the potential for mining polyhalite at Cleveland Potash Limited’s (CLP) Boulby mine and create 125 direct jobs, and 265 indirect jobs, as a consequence.

The £38 million project will involve installing new underground equipment, building new surface facilities to crush and screen the material, upgrading logistical and rail infrastructure and enhancing facilities at Tees Dock for serving customers worldwide.

General manager Phil Baines said: “We are now in the position to move ahead with the first phase of our plans and we are pleased that the Government has recognised the potential for establishing the UK as a pioneer in the extraction and marketing of this new mineral which can make a significant positive impact on world agriculture at the same time as helping to safeguard the future of the Boulby mine and providing a much-needed boost to the local and regional economy.”

Six of the successful projects are based in the Tees Valley area, and are expected to create 220 jobs and leverage a total of £23 million investment.

Stephen Catchpole, managing director of Tees Valley Unlimited, the Local Enterprise Partnership for Tees Valley said: “The latest RGF approvals for Tees Valley further enhances the drive to diversify and grow the area’s industrial offering, to sustain and create employment and enable Tees Valley to harness new and emerging opportunities.

“The latest successes, which comprise projects across all five Tees Valley boroughs, are testament to the bold, innovative, well thought-out and evidence-based bids that have been submitted by ambitious local organisations.”

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