'Tremendous opportunities' for chemical industries.

Byline: Iain Laing

APLAN is being drawn up to look at the future of the Wilton centre for the chemical industry by business and public sector leaders.

The report looking at the needs of the massive site near Redcar on Teesside has been launched amid growing concerns about its viability after a series of devastating closures and redundancy programmes.

Recession-hit chemical companies Artenius, Dow and Croda have decided to close their plants in Wilton with the loss of more than 300 jobs this summer, fuelling fears of a chain reaction affecting many of the other engineering and chemical ingredient companies at the site.

And there continue to be concerns for the future of the nearby Teesside Cast Products steel plant and its 2,000 staff since a buyers' consortium pulled out of an agreement to guarantee the purchase of most of its output for the next five years.

Bob Coxon, chairman of the North East England Science and Industry Council, is to oversee the report, which will be conducted by the North East of England Process Industry Cluster (NEPIC). The council, formed earlier this year, includes representatives from Lord Mandelson's department for business and the chief executive of One North East.

The announcement followed a meeting of industry leaders last week at Wilton. Maximising existing assets in the sector and preparing to take advantage of structural change were both on the agenda.

Business leaders from chemicals industries across the area, as well as Tees Valley Unlimited (TVU), NEPIC, Tees Valley Engineering Partnership (TVEP), One North East, Tees Valley Regeneration (TVR), Tees Valley Joint Strategy Unit and local MPs are behind the study. Mr Coxon said: "We are putting together this study over the coming weeks to look at the needs of the industry to make it fit for future purpose.

We will then have in place the full understanding of what the business needs."

In addition to the new study, Tees Valley Unlimited has developed an action plan to deal with the impact of closures in the chemicals industry.

A longer-term study into the future of the petrochemicals industry is also in the offing, as well as production of an economic plan for the Tees Valley, with proposals to establish the area as a European Centre of Excellence for the low carbon economy TVU chairman Hugh Lang said: "We believe there are tremendous opportunities in building on our heritage and expertise."