£50m Teesside chemical plant to go ahead

Huntsman Tioxide this week announced the go-ahead for the new titanium dioxide pigment plant at Greatham, near Hartlepool. It will create up to 400 construction jobs at its peak.

The move marks the first major investment in new plant by Huntsman in the UK since it acquired four key businesses from ICI in a £1.7bn deal last year.

The businesses Huntsman bought were aromatics, petrochemicals, polyurethanes and tioxide, all with a significant presence on Teesside.

Initial preparatory and design work has already been done on the "ICON 2" project and planning permission has been granted by Hartlepool Council. Construction work will start almost immediately with completion by mid-2002.

The new plant will increase overall titanium dioxide capacity at Greatham to 100,000 tonnes a year and will help to secure the long-term future of the site, which employs about 300 people.

It will strengthen Huntsman Tioxide's position as the leading manufacturer of titanium dioxide pigments in Europe and further underpin its standing as third largest producer in the world.

The Huntsman Corporation's chief executive officer, Mr Peter Huntsman, described the go-ahead for the scheme as a significant development both for the company and for Teesside.

"I am delighted to be able to confirm this major expansion so soon after acquiring the businesses from ICI," he said. "It will improve our competitiveness and reflects our high level of confidence in the business and our strong commitment to our customers.

"The new technology we are implementing with this investment will also enhance our capability to meet the ever-increasing environmental demands of the future."

Mr Huntsman said the expansion would help ensure the viability of the tioxide site at Greatham.

Huntsman Tioxide titanium dioxide pigments are used mainly in the production of paints and plastics but also in paper, printing inks, cosmetics, textiles and foodstuffs. Titanium dioxide is the most commonly used pigment in the world.