A CHEMICALS company is forging ahead with a £2.1m upgrade that it hopes will give it an edge over the competition.

Terra Nitrogen (UK) Limited secured a £250,000 Regional Selective Assistance grant from Tees Valley Regeneration (TVR) that will help it complete the project.

The company, based in Billingham, produces 750,000 tonnes of ammonia a year that is used in a range of applications including pharmaceuticals, fertilizers, heat treatment, phosphates, fermentation, explosives, dyes and man-made fibres.

Terra decided it needed to make a number of improvements to its plant because increased manufacturing was vital to compete with other companies.

The rise of rival operations in other parts of the world, where natural gas, a major raw material, is cheaper, has increased the pressure on Terra to find ways to stay ahead of the competition.

The company has a number of manufacturing operations, but the ammonia plant is central to its Billingham base, where 215 staff are employed.

It is also important to the Tees Valley chemical industry as a whole, as ammonia is a key raw material for a number of multi-nationals.

David Hopkins, chemicals and utilities director at Terra Nitrogen, said: "The support and guidance we received from Tees Valley Regeneration was very helpful and it was particularly pleasing how they were able to meet our exacting - and short - time-frames for decision making."

The grant was made available through a combined effort by TVR and regional development agency One NorthEast.

Neil Etherington, strategic investment and marketing director for Tees Valley Regeneration, said: "We were delighted to have been able to help secure this assistance for Terra.

"This update will reaffirm Terra's position as an integral part of the Tees Valley chemistry set."

The upgrade, which will take about 25 days, will be carried out in November when the plant shuts down for its bi-annual overhaul.

Other than periods of general maintenance, the plant operates 24 hours a day, seven days a week.