New life for old sites

By Rob Pittam Business Correspondent

Birmingham has had a facelift

Next week Europe's biggest single city regeneration project is unveiled.

The Bull Ring in Birmingham - once described by Prince Charles as a planned accident - has been replaced by a huge shopping complex.

It will create 8,000 jobs and pump millions into the local economy.

And it's the latest piece in a £9bn regeneration jigsaw that is changing the face of Birmingham.

I have to say that on my travels around the UK I sometimes blanch when I hear the "R" word.

Spectacular

Faceless committees often come up with grandiose regeneration plans that promise the earth but result in nothing more than gleaming factories devoid of workers.

But sometimes it works.

Hull, described by locals as a cul-de-sac, is enjoying a rebirth thanks to spectacular attractions like The Deep.

Former ICI factory now home to 80 businesses

And recently in Runcorn, it was good to see new life being breathed into the former ICI works.

The industrial giant used to employ thousands of people at its Cheshire plant.

But three years ago the company pulled out, with the loss of 1,700 jobs.

In Scotland, Wales, the north-east of England or the coalfields of Yorkshire and Nottinghamshire, you can see exactly the same thing.

Acres of neglected land, dotted with empty buildings looking down on roads that used to throng with workers.

Jobs created

If local people are lucky, the land will be developed for housing and maybe they'll find jobs stacking shelves or cleaning offices.

But here in Runcorn, something different is happening.

The land is springing back to life.

About 1,000 people now work at The Heath

It's just over two years since the heavy chemical plant closed, but already 1,000 jobs have been created.

Within a year, that figure could more than match the number of jobs that have been lost.

What's more, it's all been done by three former ICI managers, without any grants or government aid.

The people behind it believe they are developing a model for regeneration that could be used across Britain and the rest of Europe.

It's a simple enough idea.

When ICI announced they were closing the plant a management team approached the company asking about a buyout.

Business park

They were told the works wouldn't be sold as a going concern.

There are restaurants, a gym and a bar

So they went back to the drawing board and came up with the idea of a business park.

They wanted to use the vast offices and science labs to attract new businesses or companies looking to relocate.

Central to the idea was keeping the core services that had been developed over the years.

And so The Heath, as the site is now known, has an ICI-built conference centre, a well-stocked science library and a room for controlled explosions.

There's even a workshop with a scientific glassblower - someone able to produce glass vessels to the exact specifications, vital for carrying out accurate experiments.

No pay rise

But on top of that there is also a gym, several restaurants, a bar and shops.

It's proved a popular draw.

There are now 82 companies based at the site - an incredible rate of progress.

It hasn't been easy, though.

There are so many facilities here and it's a shame to waste them. John Lewis, Marketing director

Only 80 former ICI workers were kept on, and for the first two years, they, like the directors, had to go without a pay rise while the business centre struggled to establish itself.

But now things are looking up and the workers have even had their first pay rise - a modest 2%, but a sure sign that the plan is working.

John Lewis, the company's marketing director, believes it's an example others could follow.

"What we are developing here is a model that could be used for any big corporate site," he says.

"There are so many facilities here and it's a shame to waste them.

"This kind of thing could be done anywhere - it doesn't matter if you're in Sunderland, Cornwall or France.

"We've made sure that the site survives, it doesn't become just another shopping centre, another Tesco's.

"Businesses come here and they can use all of our facilities and experience. They can talk to each other in the restaurant and bars and learn new ways of doing things."

Simple idea

It's such a simple idea you wonder why no-one has done it before.

Peter Cook, the former site manager for ICI who led the buyout, blames the conservative property market.

"It is really hard for venture capitalists to look at something like this, and all the work involved in making it viable, and then decide to back it.

"It is far easier for them to see it as a housing development or an out-of-town shopping centre.

"But we didn't want that to happen and we didn't want to see all the skills lost."

The site is filling quickly. At the moment it is 60% occupied and there are plans to have 100 businesses based there by the end of the financial year.

It's not just science firms who are drawn to The Heath; more than 20 business sectors are represented.

And who knows, somewhere among them might be the next ICI.