Mixed news for chemical workers

The news comes as ICI announces more job cuts

Public money will secure more than 1,000 chemical jobs in the north-east of England, Prime Minister Tony Blair has revealed.

On a visit to the region Mr Blair said the government is pledging a £50m aid package to chlorine manufacturer Ineos Chlor.

The grant to the Essex-based company will in turn secure 10,000 jobs throughout the UK, including 1,000 in the Teesside chemical industry cluster.

The news comes as about 100 jobs are to go at the giant ICI complex on Teesside.

Paints and chemicals firm is cutting 1,400 jobs in order to reduce costs, with 300 posts going in the UK.

But on a visit to County Durham, Mr Blair said the majority of the region's chemical industry would benefit from the latest state cash.

The £50m worth of Regional Selective Assistance will help modernise chlorine production in the UK.

Mr Blair said: "The chemical industry is an extremely important part of the region's economy.

Manufacturing base

"This aid package will help secure the future of the chemicals industry and over a 1,000 jobs in the North East.

"This demonstrates the Government's commitment to high skilled, high value manufacturing."

Trade and Industry Secretary Patricia Hewitt added: "This is great news for the UK chemicals sector and the regions which will benefit from today's decision.

"A strong UK chemicals industry is a crucial part of our manufacturing base and of the UK economy. Products of the chemical industry form the basis for every manufacturing activity - vital to transport, healthcare, food and drink, construction, textiles and IT."

Regional Selective Assistance is available to UK and overseas companies to support investment in economically deprived areas of the country.

The UK chemicals industry is the sixth largest in the world, contributing £2.4bn to the UK's balance of trade.