building our industrial strategy...redcar ts10 5qw tel: 01642 408000 [email protected] building...

South Tees Development CorporationTeesside Management Offi cesRedcar TS10 5QW

Tel: 01642 [email protected]

Building Our Industrial Strategy

31846 STDC BrochureV3.indd 1-231846 STDC BrochureV3.indd 1-2 23/08/2017 12:1823/08/2017 12:18

In October 2015, Sahavirya Steel Industries (SSI) went into liquidation, marking the end of almost 170 years of iron and steel making on Teesside. Immediately following the closure a Task Force was set up with the aim of providing tailored support to affected workers, local businesses, communities and the wider economy. The Task Force has been focused on helping workers and families by supporting new business start-ups, growing businesses and providing help to impacted companies in the SSI supply chain.

The Task Force has made a positive contribution to the people and

communities affected by the SSI closure, but there is also an acknowledgement that the Task Force can only go so far in responding to the economic impact arising from the loss of steelmaking to the area. The challenge of replacing lost industries with long-term, sustainable, large-scale employment opportunities for the future generations of Tees Valley is one that requires major intervention and signifi cant investment, as well as an ambitious, but deliverable vision and industrial strategy for the area.

The establishment of a Mayoral Development Corporation, to deliver this vision of the regeneration of the South Tees area, is an important step in the journey towards economic recovery and sustained prosperity for Tees Valley.

BACKGROUND AND HISTORY

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The South Tees Development Corporationis an exciting new enterprise that is crucial in promoting the economic development and business growth in our area.

FOREWORD Ben Houchen. Tees Valley Mayor.Chair of the South Tees Development Corporation.

Covering 4,500 acres, it is the fi rst Mayoral Development Corporation to be set up outside of Greater London. Chaired by me, and supported by a powerful board that exemplifi es a strong private-sector and local community focus, it is the single greatest regeneration opportunity in the UK and anchors Tees Valley’s response to the Northern Powerhouse and Government’s Industrial Strategy.

The Development site is well-known for including the home of the former SSI Steelworks, but that is only part of the story and the powers handed down from Whitehall for investment in infrastructure to attract new

business and co-ordinate land ownership will transform this site into a global industrial hotspot.

The opportunity to reunite the fragmented land ownerships created by the break-up of the former Tata Steelworks in 2010 presents a once in a generation chance to drive our economy forward in a world-class location. Under the direction of the Corporation’s Board, we will grasp this opportunity and create a carefully chosen balance of major investors, cutting-edge industry and supply-chain services that stretches out across Tees Valley.

Already, the world’s largest purpose-built biomass energy plant, MGT Teesside, is being constructed on the site and the area will provide access to export for the world’s largest Polyhalite Mine, accessed from a 23-mile tunnel to the Sirius Minerals mine in North Yorkshire.

British Steel has also made a strong and growing commitment to the site.

These projects, and many more in our inward investment pipeline, demonstrate the level of ambition for our area.

Whilst this is a huge development opportunity for the South Tees area, it is by no means limited to the boundaries of the site and we are working closely with our partners and local businesses to champion neighbouring sites and the whole of Tees Valley as a place for future investment.

This is a 25 year vision and one that will be pivotal in transforming the South Tees area, and wider Tees Valley, into a national asset and it is a key part of my mission to deliver 25,000 new jobs in Tees Valley over the next ten years.


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One of the key recommendations of this report, “Tees Valley: Opportunity Unlimited”, was to establish a Mayoral Development Corporation for the South Tees area. The resulting South Tees Development Corporation is overseen by the Tees Valley Mayor and the Tees Valley Combined Authority and represents an international level opportunity to grow the Tees Valley economy, making it one of the UK’s biggest industrial economic prospects.

This is the fi rst Mayoral Development Corporation outside of Greater London. It has been set up to promote the economic development of Tees Valley by converting assets in the South Tees area into industrial opportunities for business investment and economic growth which, once fully developed, will contribute an additional £1 billion per annum to the Tees Valley economy.

The South Tees Development Corporation site is an area of prime land south of the River Tees that covers 4,500 acres. The Vision is to see the area transformed into a hotbed of new industry and enterprise that makes a substantial contribution to the sustained economic growth and prosperity of the region. This Vision sees the creation of up to 20,000 new jobs, directly resulting from the Corporation, in skilled sectors and is heavily focused on manufacturing innovation and advanced technologies within a high value, low carbon, diverse and circular economy.

The Vision extends to realising a positive change in the external perceptions of the South Tees area, and the wider Tees Valley, to potential inward investors.

ABOUT THE SOUTH TEES DEVELOPMENT CORPORATIONThe UK Government commissioned Lord Heseltine to write an

independent report aimed at exploring and supporting industrial

opportunities for inward investment in Tees Valley.

Key objectives:

• To ensure the South Tees area becomes a major contributor to the Tees Valley economy and complements, rather than competes, with the rest of the region, bringing the SSI site, and other under-utilised land, back in to economic use

• To attract private sector investment and secure good quality, higher skilled and well-paid jobs that are accessible to the people of Tees Valley

• To transform and improve the working environment of the site, providing safe conditions to the workforce and wider community

• To contribute to the delivery of UK Government’s Industrial Strategy by supporting the growth of internationally competitive industries with access to global markets.

In December 2016 the South Tees Site Company Ltd was established by Government and is responsible for the safe, secure and cost-effective management of the former SSI steelworks site.

It will play a pivotal role in the safe redevelopment of the South Tees area working to a “make it safe/keep it safe” strategy.


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Connectivity

Tees Valley’s transport routes link other industrial and manufacturing hubs across Yorkshire, Humber, the North West and the rest of the North East. Combined with the international gateways at Teesport and Teesside Airport, they provide some of the fastest access for businesses and residents to national and international markets and employment. These fast commuting times are a key selling point to attract businesses and people to the area.

The South Tees Development Corporation site has excellent road connectivity. The A66 East-West route commences at the site boundary and there is also easy access to the A19 North-South route, both of which provide access to the M62 and A1(M) strategic routes.

The site benefi ts from national rail connectivity for passengers and freight, with direct rail links to the East Coast main line and Trans-Pennine routes providing access to all parts of the UK, with direct routes to London and Scotland, Leeds and Manchester

through the vital gateway provided by Darlington.

Located at the mouth of the River Tees, and encompassing the important assets of Teesport and Redcar Bulk Terminal, the area could not be better located to capitalise on the unique selling point of excellent sea transport connectivity and the deepest port on the eastern coast of the UK. This is a major asset to attract global businesses and realise an international-scale industrial centre of excellence on South Tees.

Teesside Airport is a national and European gateway, supporting the connectivity of Tees Valley to global markets. The airport is in close proximity to the rail line, which connects the main centres of population, including the South Tees Development Corporation area.

Location

The site covers approximately 4,500 acres of land to the south of the River Tees and is wholly in the Borough of Redcar and Cleveland. It is in the heart of Tees Valley’s industrial zone and benefi ts from strategically important businesses, facilities and operations, which includes the site of the former SSI steelworks, as well as other industrial assets.

Being at the mouth of the River Tees, the area benefi ts from river access and encompasses the major port facilities of Teesport and Redcar Bulk Terminal. The South Tees area benefi ts from being situated within a major export region for the UK, with Teesport being the largest exporting port in England. Immediately to the south of the site is the world-renowned major industrial complex of Wilton International.

Benefi ts for investors

The South Tees area and wider Tees Valley industrial zone has some of the lowest operating costs in the UK, with rents and rates about half of most major cities, and a quarter of those in London and Aberdeen. Investors will also benefi t from lower energy prices. The area is home to an experienced and highly skilled workforce, with the lowest staff turnover of any other UK region, guaranteeing companies investing in South Tees access to a secure, highly effi cient workforce.

SOUTH TEES DEVELOPMENT CORPORATION SITE


The Development Corporation site and wider

South Tees area benefi ts from the presence of

strategically important businesses, facilities and

operations that enhance the attractiveness of the

regeneration programme. These already thriving

businesses and partners offer unique selling points

for the area and will help attract signifi cant

investment from other major businesses.

The South Tees Development Corporation

is working collaboratively with the existing

businesses on the site in order to fully exploit the

opportunities available and the existing assets

on the site, and will offer support through mutually

benefi cial opportunities wherever possible,

enabling these companies to also grow and

prosper. Major operators already located

on the site include;

PD Ports (Teesport)

Teesport is one of the most important ports in the UK, offering deep-water facilities and lock-free access to the North Sea. It is England’s largest exporting port, offering access to global markets. It is widely acknowledged as one of the best connected and fastest growing feeder ports in the UK and is a key asset for delivering the ambitions for the regeneration of the South Tees area.

Redcar Bulk Terminal (RBT)

RBT is an important asset for the River Tees, one of the best deep water facilities of its type in the UK, and is a crucial aspect of the South Tees regeneration programme. The terminal operates a 320 metre long quay which can accommodate vessels up to 17 metres draft. RBT is approved for the storage of un-cleared goods and enjoys direct rail access to the National Rail network as well as excellent road connections to both the A19 and A66

British Steel

British Steel occupies about 300 acres in the South Tees area. It operates the world-renowned Teesside Beam Mill, with operations focused solely on the production of long sections and profi les. Around two thirds of the area is utilised for the external storage of products and there is the potential availability of this area for alternative development within the regeneration programme.

Northumbrian Water

Northumbrian Water operates a state-of-the-art effl uent treatment facility within the site. The facility was established to serve the major industrial complexes within the area, including iron and steel making.

The presence of an on-site industrial effl uent treatment facility is a key attribute for the area and boosts its attractiveness to potential industrial operators.

BOC

BOC occupies land at Teesport and is a leading provider of gases to industrial operators in the area. It is an important asset for the site and is currently supplying the South Tees Site Company Ltd with nitrogen in support of the ongoing “keep safe” operations at the former SSI site.

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KEY ASSETS AND MAJOR OPERATORS

Wilton International

Wilton International is a 1,900 acre complex adjacent to the South Tees Development Site and is one of the UK’s most important locations for process industry manufacturing. The site is of huge importance to the local and regional economy, supporting hundreds of supply chain companies. If offers shared access to low cost power, steam and other utilities and businesses benefi t from integrated site infrastructure, high quality site services and close proximity to Teesport. Wilton is a major asset to the area and businesses investing here can benefi t from its competitive offer.

RBT

Ex-ICILandfi ll

CoathamMarshBritish

Steel

SouthGare andCoatham

Sands

NWL Bran Sands

Treatment Plant

Sembcorp Utilities Corporation

PD Ports

BOC

TeesCommerce

Park

South TeesFreight Park

Bolckow Ind. Est.


The steelworks closure marked the end of almost 170 years of iron and steel making on South Tees and the wider Tees Valley area, leaving an industrial legacy underpinned by a reputation for world class steel making. Teesside steel has contributed to some of the most iconic structures across the globe and is there is a tremendous amount of pride in the area. The preservation of Tees Valley’s industrial heritage is an important part of the overall South Tees regeneration programme and there are some key opportunities to use the landscape to develop a strong

heritage theme as part of the open spaces strategy. There are numerous examples around the world where the retention of heritage assets have contributed to the success of the regeneration process and the Development Corporation will support the preservation of assets as part of the open space strategy.

The area benefi ts from almost 590 acres of open space land, including South Gare, Coatham Sands, Coatham Marsh and Bran Sands Lagoon. The creation of carefully designed areas

of landscape and public open spaces that support long term and sustained habitat improvement is an important part of realising a high quality, world class Business Park. These open space areas will be used to reinforce the character and identity of the area as an attractive setting for leading edge advanced manufacturing, high technology and innovation, whilst preserving suffi cient assets to ensure the area’s industrial heritage is not lost.

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INDUSTRIAL HERITAGE AND THE ENVIRONMENT

In order to provide a platform for delivering the development in a fi nancially viable way, there are key building blocks that need to be put in place at the start of the programme, such as demolition, infrastructure works and site preparation.

A draft master plan, published in Autumn 2017, has been developed that aims to provide a fl exible framework for achieving the socio-economic ambitions for the regeneration of the South Tees area, realising that a long timeframe is necessary for the successful

implementation of the plan for economic growth in South Tees and the wider Tees Valley area.

Tees Valley is one of the most signifi cant integrated industrial economies in the UK and produces some 30% of the UK’s process output. Tees Valley Combined Authority has ambitious plans to grow the local economy by creating 25,000 new jobs and £2.8 billion of additional GVAin the next decade.

The regeneration of the South Tees area is a central part in realising these ambitions to boost competitiveness,

attract direct foreign investment and open up labour markets. The Combined Authority has a critical role to play in in both supporting and advising the South Tees Development Corporation, and in promoting inward investment in the area. Unlike previous development corporations that reported to central Government, decisions will be made at a local level, reporting directly to the Tees Valley Mayor.

THE FUTURE FOR SOUTH TEES

WHAT WE ARE DELIVERING

£20,000

NEW JOBS CREATED

EQUAL OR GREATER AVERAGE

SALARIES FOR NEW JOBS

REGENERATIONOF A

LOCAL SITEINTO A

NATIONAL ASSET

EXTRA £1 BILLION PER ANNUM

INTO THE TEES VALLEY

ECONOMY

FIRST MAYORALDEVELOPMENT CORPORATIONOUTSIDE OF

GREATER LONDON

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