CHEMICAL giant Huntsman Corporation is to build a £50m titanium dioxide pigment plant near Hartlepool.

The new plant, at Greatham, is part of the commitment made by the corporation when it arrived on Teesside last year, promising to lead a revival of the chemical industry in the region.

The landmark announcement 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 in July, 1999.

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

Peter Huntsman, who is chief executive officer of Huntsman Corporation, described the go-ahead of the project as a significant development for both Huntsman and Teesside.

"It will significantly improve our competitiveness and reflects our high level of confidence in the business and our strong commitment to our customers."

The new plant will help secure the long-term future of the Greatham site, which employs 300 people. Construction work - creating 400 jobs at peak - will begin almost immediately, with completion expected by mid-2002.

The facility will increase Greatham's overall titanium dioxide capacity from the present 72,000 tonnes to 100,000 tonnes a year.

Mr Huntsman said the new technology being implemented will enhance Huntsman's capability to meet the ever-increasing environmental demands of the future.

"This expansion will help ensure the viability of the Tioxide Site at Greatham and is a fine example of our strong commitment to the Teesside region."

Huntsman Tioxide titanium dioxide pigments are used in the production of paints and plastics as well as printing inks, cosmetics, textiles and foodstuffs.