AGREEMENT for a major Saudi investment of nearly £ 1 billion in SABIC in Teesside has been secured, creating and protecting 1,000 jobs.
The deal, struck by Saudi Aramco, will see SABIC’s parent company inject £ 850million into the Teesside business, ending months of uncertainty for thousands of workers and chain members. business supply.
Fantastic to see almost £ 1 billion invested in @SABIC‘s in Teesside, creating and protecting 1,000 jobs.
It’s a huge vote of confidence in the UK’s chemical and process industry, which is at the forefront of innovation in clean and green technology. https://t.co/t91mB8kouU
– Boris Johnson (@BorisJohnson) October 27, 2021
The new funding will help restart its oil cracker in Wilton.
Read more: Millions of Saudis could reopen Wilton ‘cracker’ factory
The cracker, known as the Olefins 6 plant, breaks down hydrocarbons into chemicals such as ethylene which are then used in a host of additional processes, and has been shut down for over a year.
SABIC has also confirmed that it will explore converting the cracker to run on electricity, making it the first cracker in the world to be converted to run on electricity, if successful, SABIC will convert all of its crackers around the world.
The investment comes following negotiations between Tees Valley Mayor Ben Houchen and ministers with Mr. Houchen meeting with Yousef Abdullah Al-Benyan, the global managing director of SABIC, earlier this month at the World Summit on the investment organized by the Prime Minister.
Major investment announced on Teesside tonight from @SABIC
Fantastic news for the UK chemicals sector + for jobs in the North East
– Kwasi Kwarteng (@KwasiKwarteng) October 27, 2021
Tees Valley Mayor Ben Houchen said: “This massive investment is another huge vote of confidence in our chemical and process industries which are beating the world and will create and preserve 1,000 skilled and well-paying jobs for local workers.
“SABIC has always been important to Teesside and this funding further strengthens these ties. Since the cracker was put on hold last year, there has been some uncertainty about the future of the plant, this announcement will remove that uncertainty once and for all.
“I would like to thank Yousef Abdullah Al-Benyan who understands how important SABIC’s Wilton site is to the future of the company and their emission reduction plans.
“Investments like these, and those we guarantee in hydrogen, offshore wind and carbon capture that take shape across the Tees Valley, result in less pollution and foster an environment that, like these industries, is also cleaner, healthier and safer.
Jacob Young, Member of Parliament for Redcar, said: “This is really fantastic news for the Wilton site and for the Teesside industrial cluster at large. One day we have seen government and UK Infrastructure Bank investments announced for our region, to get this on the line too is phenomenal.
“Hundreds of millions of pounds invested in the site, a secure future for decades to come and creating and protecting over 1,000 jobs. What a result.
“Having worked at SABIC in Teesside, being part of its rebirth is personally very special to me, and I want to thank Lord Gerry Grimstone and Mayor Ben Houchen for all of their work in helping us secure this.
“After years of industrial decline, we are witnessing a recovery of our industry in Teesside – spurred on by our free port and the decision of Net Zero Teesside – and I could not be more excited about what our future holds and incredible opportunities that we create. here. “
Glad to welcome @SABIC Future plans to invest around £ 850million in Tees Valley, creating and protecting 1,000 jobs at a chemical plant they intend to decarbonize.
A strong signal of 🇬🇧’s ambition to create sustainable jobs and growth before #COP26
– Lord Gerry Grimstone (@GerryGrimstone) October 27, 2021
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