News Article
Grant support from One North East during the last 12 months will help create 3,765 new jobs and safeguard a further 2,029.
The regional development agency administers the DTI’s Selective Finance for Investment (SFI) grants – and in 2006 awarded more than 100 companies £27.1m to help them grow, create new employment and protect existing jobs.
The grant support is expected to generate £335m worth of capital investment by companies around the region who received the grant.
Among the highlights of 2006 was the deal with global shipping giant Maersk, which was awarded a £1.8m grant to transfer its ship management division to the region, bringing with it 40 jobs and the future creation of over 150 more; the news that the Tanfield Group had acquired UpRight Powered Access, which will see it receive a £2m grant from One North East if it goes on to create the 400 jobs it expects to; and the £200,000 grant awarded to Norwegian-owned oil and gas contractor Seadrill Engineering, which was put towards the opening of a satellite office in Blyth which could house as many as 60 staff, including specialist engineers, within three years.
David Allison, Director of Business and Industry at One North East, said: “We want to do all we can to encourage businesses to grow in North East England, and therefore I am delighted that so many regional firms are benefiting from our SFI programme.
“The offers of grant support we made last year are expected to create or safeguard over 5,000 jobs, result in the expansion of dozens of businesses, and generate capital investment totalling £335m.
“This will certainly help the region secure its place at the forefront of business and industry, as well as meeting the ambitious targets set out in the Regional Economic Strategy (RES).”
The SFI programme awards grants to companies for capital investment projects that lead to the creation or safeguarding of employment. And while it can be used to attract big overseas companies to the region, it also plays an important part in the continued development of regional and national companies – in fact 90 per cent of grant offers were made to existing UK operations.
Other firms to have benefited during 2006 include CJ Garland and Co, which was given a £575,000 grant to open a new customer contact centre in Stockton, leading to the creation of 456 new jobs; Italian company Berco, which was awarded £210,000 to open a manufacturing facility in Middlesbrough, creating 40 jobs; Tyne and Wear Pallets, which, with the help of a £90,000 grant, was able to buy new machinery and create 18 new jobs; Britton Decoflex in Hartlepool, which used a £150,000 grant to modernise its facilities and create 52 new jobs; and M&S Automotive Coatings in Boldon, which will use a £160,000 grant to relocate, expand the business and take on 26 new staff.
Between January 1 and December 31, One North East made 121 offers of SFI assistance worth a combined total, with capital investment, of over £360m.
David Allison added: “The SFI grants we award have a significant impact on the regional economy, making a valuable contribution to its development.
“Securing inward investment from overseas companies like Maersk and Berco send out the signal that the North East is a desirable place to do business, and can compete with its national and international counterparts.
“I’m confident we can build on the success enjoyed during the last 12 months and make 2007 the year North East England really secures its place as the number one business location of choice.”
For more information please contact: Leanne English, press office, One North East, on Tel: (0191) 2296738, 07917 232678, or email:
Leanne.English@onenortheast.co.uk
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