THE heart of the North-East chemical industry is undoubtedly Tees- side, yet in the relative backwater of Consett, Thomas Swan and Co is doing its bit to fly the flag for that industry in County Durham.

Dai Hayward, from Wales, is general manager of the company which has been involved in the chemical sector for 75 years.

He is also a council member of the Chemical Industries Association (CIA), responsible for doing his bit in sustaining the UK industry.

The company started in roadstone, crushing rock and providing slag for Consett's once-largest employer, British Steel.

It is now a renowned chemical company with two- thirds of its products sold overseas.

Mr Hayward said: "If you go back ten years, the chemical industry in this part of the world was basically ICI at Teesside, plus a few others. That industry has gradually got larger, which has benefited the local economy and workforce.

"Salaries in the chemical industry are generally 25 per cent higher than in other manufacturing industries, and there is a constant need for more skilled workers."

Thomas Swan employs about 150, not large by ICI standards, but it works a 24-hours-a-day, seven-days-a- week operation.

Thomas Swan has other operations in the UK, including a chemical plant in Leicester, but most of its other businesses are high-tech operations.

Mr Hayward said: "Most of our businesses are about making chemicals or doing things with those chemicals.

"Our research programme is aimed at getting the most out of technology, so that the world can benefit from the things we have developed."

The chemical industry was once seen as a dirty industry. But it is much cleaner now, said Mr Hayward.

"There has been a 95 per cent reduction in so-called red list substances in the last decade, and Thomas Swan is actually viewed favourably by the local population.

"We often go out to the local community explaining what we do here. It's part of our programme of responsible care."

Mr Hayward is the chairman of the CIA's responsible care board, looking at issues such as health and safety and environmental issues. He is also on the North-East regional environmental protection committee.

He said: "Thomas Swan is involved in the community. You can't sit behind a fence looking out. You have to put yourself in the position of the people on the other side of the fence, looking in."

Thomas Swan is already involved with a school project with the University of York, encouraging children to challenge industry, and hopefully creating some of the workforce of tomorrow.

Mr Hayward said: "The programme has been taken up all over the country and the effect is stunning. The children leave the site having learnt something about our industry and wanting to become involved when they leave school. That can only be a good thing."

Mr Hayward has been in the industry since he left university, working from the ground up.

That included a spell in Dubai, developing the market for speciality chemicals in the Middle-East.

Mr Hayward said there were several issues of concern for the chemical industry at the present time, including the argument of regulation versus competitiveness. In general, the UK and Europe has stricter regulations, which is causing more companies to look elsewhere when planning a new plant.

He said: "Our main concern at the moment is the European Union White Paper on chemicals, stating that all chemicals have to be thoroughly tested and approved before they can be marketed.

"We don't have a problem with people's right to know what a product does, but the EU wants to know absolutely everything about what goes into a product and what each individual part does.

"The UK will become less competitive, as will other countries in Europe, whereas countries in the Far East won't have to comply with the legislation, making their products cheaper.

"The EU wants to know more than is necessary, in my opinion. I don't want to stop them having the access to information, but it has to be appropriate information. There have to be safeguards, but they must be appropriate."

Thomas Swan is working with regional development agency, One NorthEast, on the development of clusters in the chemical industry. The cluster approach ensures that the support is available to companies in a particular sector, giving them access to universities and the skilled labour they produce.

Mr Hayward said: "The regional development agency's approach is one of wanting to back winners in the region, and the chemical industry is very much seen as a winner.

"We need to produce the right skills, and to do that the universities have to build links with industry to ensure they provide what companies want and need.

"That will help the industry to continue to exploit the technology to develop new businesses and products relevant to today's world.

"As a result, this region, with its large chemical industry, should benefit, but it will be a struggle to stay at the forefront and in the future, that will get even harder.