BY Sam Walker | Tuesday 20 August 2024
Humber Freeport has helped to attract yet another major inward investment by playing a key role in securing a £250m development by a world-class business.
Mitsubishi Chemical Group UK Ltd, part of one of the world’s largest chemical producers, has committed to invest in a new production line at Saltend Chemicals Park, which is located within one of the three Humber Freeport tax sites.
Preparatory works have begun to make way for construction of the new production line, which will double Mitsubishi Chemical Group’s capacity at the site, east of Hull.
The investment in a second production line will create dozens of new jobs while also safeguarding the existing 130 roles at the Mitsubishi Chemical Group facility on site. The new production line is expected to become operational in 2026.
It underlines Saltend Chemicals Park’s status as one of the UK’s leading industrial clusters, with a series of recent and current investments adding to well-established operations.
Saltend Chemical Park’s status as part of Humber Freeport’s Hull East tax site has been a key factor in securing the investment, with plans for Mitsubishi Chemical Group to extend its lease with the chemical park’s owner and operator, px Group, until 2060.
Businesses investing within the Humber Freeport tax sites benefit from a series of advantages, ranging from business rate and stamp duty land tax relief, to National Insurance support designed to reduce employment costs.
Humber Freeport Chair Simon Bird said: “We are delighted that Mitsubishi Chemical Group has chosen to make this very significant new investment at Saltend on a site benefiting from being within the Humber Freeport footprint.
“The substantial advantages offered by freeport status were an important factor in securing this new inward investment.
“It supports Humber Freeport’s mission to attract significant investment and create new, highly-skilled jobs and aligns with two of our key areas of focus – advanced manufacturing and decarbonisation.
“The Humber is the UK’s global gateway, offering easy access to Europe and beyond. The region also has the space to grow, the people, the skills and the world-class companies already here to support investors – all of which make the Humber the perfect place to do business.
“Those advantages are substantially enhanced by freeport status, making the region an even more attractive location for large-scale investments delivering very significant and long-lasting economic benefits.”
The new production line will help to meet growing demand for SoarnoL, the brand name for a grade of Ethylene Vinyl Co-Polymer (EVOH) which is primarily used in food packaging to extend product shelf life.
Since opening in 2002, Mitsubishi Chemical Group’s Saltend facility has seen a significant increase in demand for SoarnoL, which has been driven by food manufacturers seeking packaging that can be recycled and has a lower environmental impact.
The innovative product preserves flavour and freshness through use in items such as the protective film on ready meals, squeezy sauce bottles, baby food packaging, meat packaging and much more.
The investment will further strengthen trade links between the Humber and the rest of the world, with 95 per cent of production from the Mitsubishi Chemical Group facility at Saltend exported.
Peter des Forges, Managing Director, Mitsubishi Chemical Group UK, said: “Once the new line is operational, the majority of the increased production will service the needs of our customers in more than 40 countries who continue to explore ways they can reduce waste and meet environmental targets.”
The £250m Mitsubishi Chemical Group development adds to £1bn of investment which had already been committed to Humber Freeport tax sites.
Investments which have already been announced within the Hull East tax site include Pensana’s rare earth processing facility and Meld Energy’s proposed green hydrogen plant, both also located at Saltend Chemicals Park.
Elsewhere, Finnish manufacturer Metsä Tissue has selected part of Humber Freeport’s Goole tax site to develop the UK’s largest paper tissue mill. The development will create more than 400 jobs once operational, with thousands of indirect jobs in the supply chain and local economy.
