Mitsubishi Chemical Group UK has committed to invest £250m in a new production line at Saltend Chemicals Park, within one of the three Humber Freeport tax sites.
Preparatory works are paving the way for a new production line, doubling the company’s capacity at the site east of Hull.
The investment in a second production line will create dozens of new jobs while also safeguarding the existing 130 roles at the Mitsubishi Chemical Group facility on site. The new production line is expected to become operational in 2026.
Saltend Chemical Park’s status as part of Humber Freeport’s Hull East tax site has been a key factor in securing the investment, with plans for Mitsubishi Chemical Group to extend its lease with the chemical park’s owner and operator, px Group, until 2060.
Businesses investing within the Humber Freeport tax sites benefit from a series of advantages, ranging from business rate and stamp duty land tax relief, to National Insurance support designed to reduce employment costs.
The new production line will help to meet growing demand for SoarnoL, the brand name for a grade of Ethylene Vinyl Co-Polymer (EVOH) which is primarily used in food packaging to extend product shelf life.
Since opening in 2002, Mitsubishi Chemical Group’s Saltend facility has seen a significant increase in demand for SoarnoL, which has been driven by food manufacturers seeking packaging that can be recycled and has a lower environmental impact.
The innovative product preserves flavour and freshness through use in items such as the protective film on ready meals, squeezy sauce bottles, baby food packaging, meat packaging and much more.
The investment will further strengthen trade links between the Humber and the rest of the world, with 95 per cent of production from the Mitsubishi Chemical Group facility at Saltend exported.
Humber Freeport Chair Simon Bird said: “We are delighted that Mitsubishi Chemical Group has chosen to make this very significant new investment at Saltend on a site benefiting from being within the Humber Freeport footprint.
“The substantial advantages offered by freeport status were an important factor in securing this new inward investment.
“It supports Humber Freeport’s mission to attract significant investment and create new, highly-skilled jobs and aligns with two of our key areas of focus – advanced manufacturing and decarbonisation.
“The Humber is the UK’s global gateway, offering easy access to Europe and beyond. The region also has the space to grow, the people, the skills and the world-class companies already here to support investors – all of which make the Humber the perfect place to do business.
“Those advantages are substantially enhanced by freeport status, making the region an even more attractive location for large-scale investments delivering very significant and long-lasting economic benefits.”
Peter des Forges, MD of Mitsubishi Chemical Group UK, said: “Once the new line is operational, the majority of the increased production will service the needs of our customers in more than 40 countries who continue to explore ways they can reduce waste and meet environmental targets.”
