CHEMICAL giant Huntsman is to combine Tees Valley operations on one site after deciding its pigments division, employing almost 300, will remain in the North-East.
The firm announced this morning that it is to move to a new purpose built facility at Wynyard Park, near Stockton.
It said that re-locating the pigment division's 290 employees currently based at Wilton, near Redcar and Haverton Hill, near Billingham, will benefit the firm, as its teams will be on one site.
The division's titanium dioxide manufacturing facility will remain at Greatham, near Hartlepool.
It follows a two year review by Huntsman of its international businesses, which could have potentially seen the division leave the North-East.
Many of the global functions of the pigments division, a £1bn business with manufacturing sites in seven countries, will now be overseen from the new centre.
Huntsman Pigments president, Simon Turner, said: "This re-location demonstrates our continued commitment to the North-East where we have operated for many years.
"We have a world-class workforce that is passionate about our business and they are right here, so why move anywhere else.
"We have a fantastic business that is built on the creativity and innovation of our people.
"This has seen us pioneering many things in our industry, including products, processes and packaging."
Huntsman is taking a 54,000 sq ft office building as well as a 31,000 sq ft building that will be adapted to become laboratory facilities.
Huntsman's polyurethanes division will remain at the Wilton site, where it leased its offices.
The firm said all options remained open for its existing laboratory site at Haverton Hill, which it owns.
As well as the firms employee's todays announcement will come as a boost to the 700 acre Wynyard Park, where plans for a 464m hospital were put on hold last year after the coalition Government pulled funding.
Despite the setback it is still home to around 60 firms employing more than 1,000 people.
Wynyard Park chief executive Chris Musgrave said: "We are proud that one of the world's leading chemical companies has chosen us as the base for the new business centre of its pigments division.
"Huntsman's decision is further endorsement of our on-going commitment to provide the perfect environment for businesses of all types and sizes to flourish."
It comes on the back of recent announcements including the Sahaviriya Steel Industries (SSI) deal for the Teesside Cast Products steel plant near Redcar, Hitachi announcing plans for a train factory in Newton Aycliffe and car parts manufacturer Nifco starting work on a new 8.5m plant in Stockton.
Mr Musgrave added: "This is further evidence of how the region is spearheading the economic recovery."
Stockton North MP Alex Cunningham described the announcement as "fantastic news", while Neil Schneider, Stockton Borough Councils chief executive said securing the future of a globally important business like Huntsman in the area was "crucial."
Stephen Catchpole, Managing Director of Local Enterprise Partnership Tees Valley Unlimited said: "This decision is a massive show of faith in the Tees Valley."
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