China's LB Group revives idle UK titanium plant, creating 150 jobs
What's the deal? China's LB GroupDealroom has a profile for this one. Try Dealroom →, the world's largest titanium dioxide manufacturer, has bought the idle Greatham chemical plant near Hartlepool, forming a new subsidiary, TioxideDealroom has a profile for this one. Try Dealroom →, in April. The buyout saved 131 jobs and restarted production in August. Terms were not disclosed.
What does Tioxide do? The Tees Road plant makes thousands of tonnes a year of titanium dioxide (TiO2), the white pigment used in household and industrial paints and plastics. First opened in 1971, the site had stood idle since October when previous operator VenatorDealroom has a profile for this one. Try Dealroom → went into administration, leaving nearly 130 people out of work.
Why now? The acquisition is central to LB Group's plan to expand outside China. For managing director Karen Askwith, restarting the plant was "a significant milestone," and she said the restart "has gone exceptionally well, it's exceeded expectations significantly."
What's the endgame? A recruitment drive is creating around 150 positions across the Greatham site, Tioxide's Wynyard research centre, and a new Stockton headquarters. The first phase of 70 roles drew more than 31,000 applications; a second phase for 60 more is underway, targeting 308 employees next year.
What's next? Plans are progressing to bring a second production line online early next year, returning the plant to its full nameplate capacity of 150,000 tonnes.
The signal: Teesside's chemical sector has faced heavy losses, including the announced closure of SABICDealroom has a profile for this one. Try Dealroom →'s Wilton site and HuntsmanDealroom has a profile for this one. Try Dealroom →, the last part of ICI WiltonDealroom has a profile for this one. Try Dealroom →. Against that backdrop, a Chinese buyer reviving a shuttered UK plant signals both the region's fragility and the appeal of established Western assets to global players seeking a foothold outside China.
Read more: hartlepoolmail.co.uk
Image credit: TheNoxid
