Humber Freeport helps secure ?250m investment in new production line
Humber Freeport has played a pivotal role in securing another significant investment, this time a GBP250m development by a leading global business. Mitsubishi Chemical Group UK Ltd, part of one of the world's largest chemical producers, has pledged to invest in a new production line at Saltend Chemicals Park, situated within one of Humber Freeport's three tax sites. Preliminary works have already commenced to pave the way for the construction of the new production line, which will effectively double Mitsubishi Chemical Group's capacity at the site, located east of Hull.
The investment in an additional production line is set to create numerous new jobs while also preserving the existing 130 roles at the Mitsubishi Chemical Group facility on site. The new production line is projected to be operational by 2026. This further reinforces Saltend Chemicals Park's reputation as one of the UK's premier industrial clusters, with a series of recent and ongoing investments supplementing well-established operations.
Saltend Chemical Park's status as part of Humber Freeport's Hull East tax site has been instrumental in securing the investment. Plans are underway 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 enjoy a range of benefits, 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 meet the growing demand for SoarnoL, the brand name for a grade of Ethylene Vinyl Co-Polymer (EVOH) primarily used in food packaging to extend product shelf life. Since its opening in 2002, Mitsubishi Chemical Group's Saltend facility has seen a significant increase in demand for SoarnoL, driven by food manufacturers seeking packaging that can be recycled and has a lower environmental impact The innovative product, used in items such as the protective film on ready meals, squeezy sauce bottles, baby food packaging, and meat packaging, preserves flavour and freshness. The investment will bolster trade ties between the Humber and the rest of the world, with 95 per cent of production from the Mitsubishi Chemical Group facility at Saltend being exported.
Peter des Forges, Managing Director, Mitsubishi Chemical Group UK, stated: "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 GBP250m Mitsubishi Chemical Group development adds to GBP1bn of investment already committed to Humber Freeport tax sites. Investments already 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 Metsa Tissue has chosen part of Humber Freeport's Goole[1] tax site to develop the UK's largest paper tissue mill. The development will generate over 400 jobs once operational, with thousands of indirect jobs in the supply chain and local economy.
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