CHEMICALS group Huntsman yesterday finalised the £350m sale of part of its Teesside operation to a Saudi petrochemical group.

State-controlled Saudi Basic Industries Corporation (Sabic) now owns Huntsman's base chemicals business in the region, which employs more than 800, under the name Sabic UK Petrochemicals, and the group has pledged to invest £80m.

The deal was ruled not to be creating unfair competition by the European Commission on Wednesday.

It includes Huntsman's cracker plant, at Wilton, its North Tees aromatics business, a paraxylene plant which makes raw materials for polyester, and a halfbuilt polyethylene plant - the world's largest - at Wilton.

The US group will retain its pigments division at Greatham, near Hartlepool, which employs 600, and its polyurethanes division in Wilton, which employs 100.