GLOBAL chemicals business Huntsman has opened a manufacturing facility on Teesside.

The ICON 2 titanium dioxide plant, at the company's Greatham site, is the first plant designed and built by Huntsman since the company was founded by chairman Jon Huntsman in 1970.

Up to now the company has expanded solely by acquisition and selective upgrading schemes rather than through new-build projects.

The plant, employing more than 250 staff, produces white pigments for the paints and plastics industries.

It opened last month, but was officially inaugurated by the Huntsman family yesterday.

The facility will produce more than 100,000 tonnes of tioxide every year, strengthening Huntsman's position as a leading manufacturer of the chemical in Europe.

It is currently the third largest tioxide producer in the world.

The inauguration ceremony was attended by more than 100 dignitaries yesterday, including Hartlepool MP, Peter Mandelson and Stockton North MP Frank Cook.

Jon Huntsman, chairman of the group, said: "This plant represents a unique first for Huntsman in that it is our first-ever world-scale new build project.

"The successful completion of this exciting project demonstrates in the best way possible our strong commitment to the Tioxide business and to the further development of the chemical industry on Teesside."

His son, Peter, who is chief executive of the group, added: "The opening of the new ICON 2 plant is not only a tremendous benefit to our Tioxide business, but we see it as a positive contrast to the announcements of plant closures made by other chemical companies on Teesside in recent months.

"We are doing our best to reverse this trend through a number of projects - such as ICON 2 and the recently completed £30m BOC Hydrogen plant at our North Tees site, along with the £20m overhaul of the cracker at Wilton."

Mr Huntsman called for the chemical industry on Teesside to work together for the future prosperity of the area.

He said: "If there is to be a viable chemical industry on Teesside well into the future, we urgently need new investment.

"To achieve that, the industry needs the full support of local, regional and national political and economic forces, as well as a more realistic approach to the issue of grants and incentives to help attract serious would-be investors to Teesside."