Welcome to the fifth edition of 2008 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 6 of the Bulletin will be published in June.
HEADLINES
£5.5m for Local Business Growth in the Humber
Local authorities are to receive a share of almost £300 million allocated by Communities and Local Government (CLG) for their efforts to promote business growth over the past two years.
As part of the Local Authority Business Growth Incentives scheme (LABGI), the four local authorities in the Hull and the Humber Ports City Region will collectively receive over £5.5 million, derived from increases in revenue from business rates in their respective areas.
The following table shows a breakdown of the funding for the city region, including additional allocations for the first two years and provisional allocations for this, the third and final year of the scheme.
|
Year 1 |
Year 2 |
Year 3 |
Total |
East Riding of Yorkshire |
£280,507 |
£374,597 |
£781,446 |
£1,436,551 |
Kingston upon Hull |
£216,128 |
£554,340 |
£949,817 |
£1,716,286 |
North East Lincolnshire |
: |
£182,445 |
£999,485 |
£1,181,930 |
North Lincolnshire |
: |
£122,049 |
£1,050,496 |
£1,172,545 |
Total |
£496,635 |
£1,233,431 |
£3,781,244 |
£5,507,312 |
For more details on the LABGI scheme and on the latest funding allocations, visit the CLG website: www.communities.gov.uk
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OTHER HEADLINES
Business Link Restructures
Business Link has restructured the way it will deliver its services across the region. The government organisation, which helps businesses start, build and develop, has integrated the four sub-regional Business Link divisions in to one, now known as Business Link Yorkshire.
The change has occurred due to Yorkshire Forward, the Regional development agency for Yorkshire and the Humber, putting the contract to run Business Link up for renewal. It was won by Yorkshire and Humber IDB Ltd (Y&H IDB), who began the delivery in April 2008.
All of the services will continue to be offered, plus additional services, including a business-to-business database covering a range of sectors. More services are planned to be added as the organisation develops.
Locally, the former Business Link Humber team will relocate from Priory Park Hessle, to the Hull and Humber Chamber of Commerce offices in Beverley Road.
The Business Link Yorkshire website can be accessed by following the link: www.businesslinkyorkshire.co.uk
For more information on Y&H IDB, visit their website: www.yandhidb.co.uk
New Commission Gives Employers Influence on Skills Policy
A new Commission, the UK Commission for Employment and Skills (UKCES), has been established to increase employer’s involvement in employment and skills policy development. The new agency will replace two organisations - Sector Skills Development Agency and the National Employment Panel – which both closed at the end of March 2008. UKCES will consist of a single employer-led board, which will provide ministers with direct and independent advice based on how successful and integrated they perceive employment and skills systems to be.
The Commission will also fund and manage the performance and re-licensing of the 25 Sector Skills Councils, which were established under the Sector Skills Development Agency.
For more information on the UKCES, visit their website: www.ukces.org.uk
Government Consents to Humber Tidal Energy Project
The Department for Business, Enterprise and Regulatory Reform (BERR) has given planning permission for the construction of a prototype tidal energy generator in the Humber Estuary.
The 100 Kilowatt (kW) Pulse generator, developed by Pulse Tidal Ltd, will be positioned at Upper Burcom near Stallingborough. It will be one of the first tidal energy generators to feed the national grid and, if successful, will be used to develop larger units each capable of producing 1MW. The prototype will remain in place for three years.
For more information on Pulse Tidal, visit their website: www.pulsetidal.com
E.ON Submits Offshore Wind Farm Plan
A planning application for one of the UK’s largest offshore wind farms has been submitted by energy company E.ON. The Humber Gateway Offshore Wind Farm would be positioned in the North Sea, 8km of the coast of Spurn Point, East Riding of Yorkshire, and consist of between 42 and 83 turbines producing up to 300MW of electricity – enough to power up to 195,000 homes.
The project, which is expected to cost around £700 million to complete, is subject to planning permission from East Riding of Yorkshire Council and BERR.
For more information on the project visit the Humber Gateway website:
www.eon-uk.com/humbergateway
Work Begins in Hull Gateway Area
Redevelopment work has begun in the Newington and St. Andrew’s area of Hull with a £12 million project to build 106 new eco homes. The work is part of a £300 million project led by Hull Gateway and will replace over 200 houses previously demolished by Hull City Council.
Gateway is the regeneration agency responsible for revitalising Hull’s housing market. For more information, visit their website: www.gatewaypathfinder.net
£1.5m for Deprived Hull Community
Hull’s New Deal for Communities (NDC) partnership is to receive £1,463,000 for spending in 2008-09 in order to increase job opportunities, raise educational achievements and reduce crime rates.
The funding is a share of £230 million allocated to 39 New Deal for Communities partnerships for 2008 and 2009. A recent study measuring the impact of the NDCs has shown that they have improved the levels of GCSE attainment, the number of people feeling part of their community and increased levels of satisfaction with living in their NDC. Locally the money will be spent in the Preston Road NDC area of Hull.
£500K Training Plant at Corus
Plans for £500,000 training facility at Corus’ Scunthorpe factory have been unveiled, which will help to equip first and second year apprentices at North Lindsey College with the skills required for the steelmaking industry.
The funding for the development is still subject to approval but will come from Humberside Engineering Training Association (HETA) based in Hull.
The development, which is expected to be completed in September 2008, will be housed in the heavy section mill of the site, which has been closed since 2004. It is expected to contain a hi-tech classroom, offices and an engineering training workshop.
For more information, visit the HETA website: www.heta.co.uk
Grimsby to London Direct Rail Link Proposed
A direct service from Grimsby to London has been proposed by operator Grand Union, a sister company of Grand Central Rail Company. The proposal has been made in direct response to the Office of Rail Regulation’s invitation to advise on future developments that would take advantage of available capacity on the East Coast Main Line.
The scheme could involve a service running from Cleethorpes to King’s Cross, which would also call at Grimsby Town, Habrough, Scunthorpe, Thorne and Doncaster, before joining the East Coast Main Line.
Grand Union have also submitted plans for a London to Bradford route and are considering two other schemes – Scarborough and Huddersfield – along with the Cleethorpes plan.
If the decision is taken to submit a plan for the North and North East Lincolnshire route, it is likely that an approval decision will be made within 12 months.
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MARKET NEWS
RMS Opens Logistics Company
Goole-based ports operators, RMS Group Holdings, have created a national logistics arm to its company. The new operation, called RMS Group Logistics was established in response to demand from the company’s clients. The new service adds to the existing range offered by RMS, which includes shipping, stevedoring, storage and warehousing at Hull, Immingham, Grimsby, Flixborough, Gunness and Goole.
Reckitt Beats First Quarter Forecasts
Household goods firm Reckitt Benckiser has reported an 11% increase in like-for-like sales over the first quarter of 2008, beating its forecasted results. The company, which employs 800 people in Hull, said that the increased sales were due to strong demand for household brands such as Vanish, Finish and Airwick. Recent acquisitions, such as Adams cough mixture for £1 billion and the Boots’ healthcare takeover for £1.93 billion have contributed to a total sales figure of £1.51 billion for the three months to the end of March 2008.
MAG to Review Humberside Airport Stake
Manchester Airports Group (MAG) has announced that it is to review its 82.7% majority share in Humberside Airport. The group, which is the second largest airports operator in the UK, has said it believes that all options should be considered in order to secure the best long-term future for the airport.
MAG acquired the majority share of Humberside Airport for £10 million in 1999 and has since invested nearly £7 million in improving its infrastructure. Annual passenger numbers have been maintained at around 500,000, made up of scheduled and charter passenger services, freight, North Sea gas rig services, aircraft maintenance, pilot training and a variety of other specialised niches.
For more information, visit the Humberside Airport website: www.humbersideairport.com
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MERGERS AND ACQUISITIONS
Stena Invests in North Sea Route
Grimsby-based seafood suppliers Five Star Fish have acquired A Kalkman Ltd, a firm dealing mainly in supplying flatfish to the food service sector. The deal is said to be worth in the region of £2 million and will enhance the parent company’s position in the sector.
A Kalkman Ltd. is currently based in Lowestoft, Suffolk, and employs 28 staff. It will be relocated to Five Star Fish’s premises on Great Grimsby Business Park and all employees will be offered the chance to move with it.
Last year, Kalkman’s annual sales totalled £3.7 million. Five Star Fish’s sales are expected to pass the £40 million mark this year.
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JOBS GAINS AND LOSSES
Gains
£65m Tesco Depot Opens
Tesco’s have unveiled their new 700,000 sq ft distribution depot at Capitol Park, Goole, which has created 600 jobs. The depot will require a range of skilled employees, particularly in maintenance and logistics.
The Capitol Park development is a 310-acre mixed use business park near junction 36 of the M62. When fully occupied it is expected to provide employment for over 5,000 people.
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Losses
BAE Announces 450 Redundancies at Brough
BAE Systems has announced that it will be implementing a redundancy programme for 450 jobs at its site in Brough, East Riding of Yorkshire. The cuts are being made as BAE lost a contract to supply 35 Hawk trainer jets to the United Arab Emirates.
There are around 2,000 people currently employed at the plant. The redundancies will mainly affect the Engineering, Manufacturing Engineering, Manufacturing and Business Support divisions of the operation.
24 Jobs Lost at Tryton
Hull-based manufacturer Tryton Foods has made 24 employees redundant. The company, which makes Yorkshire puddings, French fries and roasted potatoes, employs around 500 people in the Hull area. The job losses are part of the company’s business efficiency plan.
CONTACT
For further information regarding the Market Intelligence Bulletin, please contact either Clare Chapman or Mark Rogers on 01482 596777 or e-mail research@humberep.co.uk
To subscribe to our alerts service, go to www.humberep.co.uk and complete the form on the homepage.
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