Issue 1, 2010
Welcome to the first edition of 2010 of the Humber Economic Partnership’s monthly Market Intelligence Bulletin, designed to keep you posted on the latest developments affecting the Hull and Humber Ports City-region in terms of business investment news, mergers and acquisitions activity, major job gains or losses, plus any interesting policy or project announcements.
We hope you find this publication of interest. Your views are important to us and we would welcome your feedback on how this publication might be improved. Issue 2 of the Bulletin will be published in March.
HEADLINES
Energy development updates
The Crown Estates has issued development licences for Round 3 sites for offshore windfarms aimed at generating up to 32 Gigawatts of power. At an estimated cost of £75 billion, the developments are expected to create up to 70,000 jobs throughout the UK by 2020. Included in the nine zones announced is one covering 4,735 square kilometres off the Holderness Coast, with the nearest turbine positioned 80 miles out to sea. Known as the Hornsea zone, the turbines will be capable of generating 3,000 megawatts, supplying 4 percent of all electricity demand in the UK, with an estimated investment of £12 billion. The contract for this development has been secured by the SMart Wind Consortium, a joint venture between Mainstream Renewable Power and Seimens Project Ventures.
Phase two of the Immingham Combined Heat and Power Plant (ICHP) became operational in January 2010. Owners ConocoPhillips has stated that the completion of the work means another 450 megawatts has been added to the capacity, increasing generation to 1,180 megawatts from the North East Lincolnshire plant.
North Lincolnshire Council has given backing for the Heron Renewable Energy Plant, which would be constructed at the western gateway of Immingham Dock. Plans received backing from North East Lincolnshire Council in 2009. Developers Drax plan a 290 megawatt biomass-fired power station for the site, which is expected to power more than 500,000 homes and create 1,000 jobs, 850 of which would be in construction, followed by 150 permanent posts. Plans will not go to central government for the final decision, which is expected in Summer 2010.
OTHER HEADLINES
Beverley developments update
Plans have been approved by East Riding of Yorkshire Council’s planning committee for the £35 million proposal to divert traffic away from Beverley’s town centre, in the East Riding of Yorkshire. Under the plans, 1.7 miles of road would be built, including a park and ride facility with a bus link and 500 car park spaces. Plans also include a road and rail bridge. It is thought that the scheme would reduce traffic by around two-thirds, from 12,000 to 4,000. The proposals will now go to the Department for Transport (DfT), who have earmarked £30 million government funding. The remaining £5 million funding will come from East Riding of Yorkshire Council's capital programme between 2011 and 2013. If the scheme receives final approval from the DfT, it is hoped that the work could begin in 2011 and take two years to complete.
Planning permission has also been granted for the £1.5 million revamp of Beverley Memorial Hall. Proposals by Salt Architects include the removal of the current 1950’s extension, construction of a pitched roof and an outdoor amphitheatre situated to the rear of the building.
Planning permission granted for Hull recycling centre
The proposed development to turn the former Holliday Pigments factory site in Kingston upon Hull into a Materials Recycling Facility (MRF) has been approved by Hull City Council’s planning Committee, under the condition that the site be used for recycling. Any plans to use the site for the disposal of waste or incineration would require a separate planning application. The facility, which can separate different types of rubbish, would be the first of its kind in the city and would operate continually handling an expected 1,250 thousand tonnes of waste per year. Leeds based developers, Mytum and Selby, expect the development to create 70 new jobs in the city.
£14 million secured for new council homes
The Government has announced that almost £14 million is to be spent building 100 new council homes in the East Riding of Yorkshire and Kingston upon Hull. The funding will finance half of the construction, with the remaining funding to be provided by local authorities. East Riding of Yorkshire Council will receive over £7 million to construct 56 new homes, predominantly two-bedroomed, with work expected to commence in summer 2010. Kingston upon Hull will spend £6.7 million on 54 properties around the city, which will be a mix of two and three-bedroom homes. Work will begin in April 2010, with a completion date of March 2011.
Flood defence work underway on the River Trent
Work has begun on protecting land and parishes from the potential flood risk along a stretch of the River Trent in North Lincolnshire. The £1.95 million scheme is being carried out on a 2.5 km stretch of the river between Gunness Wharf and Grove Wharf. The scheme, which will strengthen existing defences along the river, is expected to take six months to complete.
Funding secured for Crowle Market redevelopment
The Regional Development Agency, Yorkshire Forward, has confirmed almost £2 million in funding for phase two of the regeneration of Crowle Market Place, on the Isle of Axholme, in North Lincolnshire. The Crowle Renaissance project aims to transform the market place into a traditional Georgian square, including a nine-jet water feature and several new buildings. The funding will go towards capital work, including the acquisition of property, demolition, planning, remedial work and relocating car parks and bus stops. The George and Dragon pub has been demolished this month as a part of the scheme.
MARKET NEWS
North Lincolnshire Homes announces £12 million investment
Property firm North Lincolnshire Homes has announced that it plans to invest £12 million into overhauling more than 700 of its properties. The homes were built after the Second World War and were not intended to be used long term. The funds are to be spent cladding the properties and replacing doors and windows, to increase the insulation and boost the energy efficiencies of the properties. Some initial work is already underway, as a part of a pilot scheme, and the project will begin properly from April 2010.
Fenner report strong performance
East Riding of Yorkshire based manufacturers of conveyor belts, Fenner Plc, has announced that revenue declines had slowed in the first part of its current financial year, whilst operating profit had increased. The firm stated that it saw better than expected results during December, which was usually a quiet month for the firm.
Can-Pack UK secure contract with Heineken
A multi-million pound contract has been won by Can-Pack UK Ltd with Europe’s biggest brewing firm Heineken. Can-Pack UK will supply the Dutch firm with cans for its beer and cider products. It is believed that the contract will boost production by 30 percent at the firms Scunthorpe plant. The agreement is subject to the successful completion of a trial approval process, which is currently being undertaken.
Environmental Expressions wins £6 million waste contract
Grimsby based waste mineralisation firm Environmental Expressions has won a £6 million contract from Moy Park, a chicken producer and processor which is part of the Brazilian Marfig Group. The North East Lincolnshire firm has stated that the contract will involve taking charge of all waste streams for three of Moy Parks plants, implementing procedures aimed at eliminating the amount of waste that the firm sends to land fill.
Nisa International plan expansion
North East Lincolnshire based grocery exporter Nisa International has announced that it plans to replicate its success of supplying British groceries to foreign shops, by expanding into new markets in other countries. The firm has stated that it plans to export other national brands from new bases that it will set up abroad. The firm will also undergo a rebrand to be called Ramsden International. It is hoped that the expansion and rebranding could be complete by 2011.
Golden Wonder wins crisp contract on East Coast Trains
North Lincolnshire crisp firm Golden Wonder has secured a long term contract with East Coast Trains. Crisps from the Scunthorpe plant will be sold on 137 weekday services on the East Coast Main Line. East Coast Trains bosses have estimated that 540,000 bags of crisps will be sold to passengers in the first year of the contract.
Tata Steel reports third quarter growth
Tata, the Indian owners of the Corus steelworks in Scunthorpe, North Lincolnshire, has reported a rise in third quarter profits in 2009, compared to equivalent figures for 2008. The firm reported that profits from its non-European operations rose from £62 million in Q3 2008, to £158 million during Q3 2009. Volumes increased by 49 percent to 1.6 million tonnes.
Flyby announce flights to Malaga from Humberside Airport
UK airline Flyby has announced that it has scheduled a route between Humberside Airport and Malaga, in Spain. The new route will run on Saturdays from May 29th until September 11th 2010.
Discover Leisure sell properties to reduce debt
East Riding of Yorkshire based caravan retailer, Discover Leisure Plc, has confirmed that it has sold all but two of its seven surplus properties as the firm works to reduce its outstanding debts. The sales mean that the outstanding balance of a “non-performing” £5 million loan with NatWest has fallen to £2.5 million. Trading activity at the properties ceased in May 2009, follow a restructuring of the company.
KCom signs contract with Phones4U
Kingston upon Hull based telecommunications firm KCom has signed a five year contract with high street retailer Phones4U. The deal includes the provision of a new wide area network for data for all the stores, internet access, leased lines, inbound and outbound switch voice calls and conferencing facilities. The deal also includes support and maintenance to Phone4U’s corporate network.
MERGERS AND ACQUISITIONS
Legal firms merge
Cooper Wilkin Chapman has announced that it will merge with fellow law firm Grange Wintringham on August 1st 2010. The firm will operate under the name Cooper Wilkin Grange, but the Beverley office will retain the name of Cooper Wilkin Chapman. The merger will result in the firm employing over 350 staff across 12 offices in the city region and Lincolnshire and it is hoped that the merger will allow the firm to offer more services.
JOBS GAINS AND LOSSES
Up to 20 new jobs are to be created by Environmental Expressions in North East Lincolnshire, following the news that the Grimsby firm had secured a contract with Moy Park.
Humberside Police has announced it is to cut 31 police officer jobs and recruit 49 civilian staff from its operations in North East Lincolnshire, as a part of its business and workforce modernisation programme, which aims to cut 300 officer posts.
13 job loses have been announced at North Lincolnshire Homes, as the social landlord looks at cost cutting measures.
CONTACT
For further information regarding the Market Intelligence Bulletin, please contact Dominic Chapman on 01482 596781 or e-mail research@humberep.co.uk
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