Chemicals company Ineos has decided against building its first cars in the North East in favour of a plant in Bridgend, according to reports by the FT.
Ineos CEO Sir Jim Ratcliffe revealed last year his intentions to build a new off-road vehicle in the UK, and Teesside officials had hoped that the cars would be built to the former SSI site in Redcar.
The new venture, named Projekt Grenadier – hopes to fill a gap in the market by producing off-road vehicles in the style of the Land Rover Defender, which is now no longer made.
But according to reports by the Financial Times, Ineos is now in talks with Ford about manufacturing the 4x4s at the carmaker’s plant at Bridgend. The FT cited three sources close to the discussions.
If correct the deal could secure up to 1,000 jobs at the plant, which are currently at risk of redundancy.
Bridgend currently employs 1,700 people but Ford has warned that 1,100 workers could be shed when a deal to make petrol engines for Jaguar Land Rover (JLR) comes to an end in 2020. The potential for additional tariffs to be imposed on the plant’s engines after Brexit have also raised concerns about the future of the facility.
Ineos is looking assemble its cars in part of the Bridgend facility currently used by JLR, with the company hoping to start production by the end of the decade.
The news isa blow for North East officials and automotive firms, who had hoped that the region’s expertise in manufacturing cars would have led to the facility being built here.
Sir Jim has said he wished to invest hundreds of millions of pounds in developing the company.
Ineos has previously said it had shortlisted locations for its new automotive business down to two locations in the UK – thought to be Teesside and Bridgend – as well as sites in Germany and other European countries.
Tees Valley Mayor Ben Houchen has previously said that he believed that Ineos had narrowed down its search for a new home to Redcar and Germany.
Speaking to The Gazette in August he said: “For months I’ve been working with Ineos and offered them my complete and utter support.
“I’ve even offered a financial contribution to ensure we get this deal over the line. It’s looking good, but I’ve told ministers that they either they step up and support the project, or these jobs will go to Germany. It’s as simple as that.
“When Nissan came to Sunderland in the 1980s, it took more than goodwill and warm words. The Government had to cough up and put skin in the game – and we need to do that again. The Nissan gamble ultimately paid off and the factory now produces more cars than the entire Italian motor industry. Ineos is our chance to do the same.”