Issue 6, 2010

Welcome to the sixth edition of 2010 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 7 of the Bulletin will be published in August. 

HEADLINES

Backdated Ports Rates to be scrapped
Legislation was announced in the Budget to waive the £175 million of backdated business rates demands that had been levied on ports businesses. For port operators on the Humber Estuary, estimated bills totalled £19 million for 59 properties in Grimsby and Immingham, £8.5million for 62 properties in Hull and £2.75 million for 58 properties at Goole. 

OTHER HEADLINES

Shoreline announce £6 million funding for Grimsby's East Marsh
Social landlord Shoreline Housing has announced it is to invest £6 million to improve homes in the East Marsh area of Grimsby. 630 properties in the area’s six multi-story tower blocks and the Comber Place building are to be updated. Plans include structural improvements, electrical upgrades and fire improvement measures. Work is scheduled to begin in September 2010.

Construction begins on A1079 link up road
Construction work has begun on a new road link in Cottingham, East Riding of Yorkshire. A 300 meter long road will run from Swift Holdings UK Ltd and will connect to the A1079 by the construction of a new roundabout. The contract, worth £1.5 million, is being undertaken by Hewlett Civil Engineering and is being managed by Rex Proctor & Partners. It is estimated that work will take six months to complete.

Plans submitted for a £250 million waste treatment and recycling plant
Northampton based Waste Recycling Group (WRG) has submitted plans for a £250 million mechanical biological treatment plant in North Lincolnshire. The plant would be located on a ten-acre site at the Normanby Enterprise Park, near Flixborough. The facility would convert waste into a fuel known as Climafuel to be used by the Cemex cement factories in South Ferriby and Rugby. It is thought that the plant would create about 70 jobs during the peak construction period, with a further 9 jobs once operational. Plans will now go to North Lincolnshire Council’s planning committee. If WRG is successful in its planning application and if it wins the contract from North Lincolnshire Council for residual waste, the firm anticipates construction on the proposed project would commence in March 2011 and would be operational in 2012. A rival bid to dispose of North Lincolnshire’s waste has been forwarded by Singleton Birch Ltd, which plans for a gasification plan at Melton Ross to generate electricity.

Hull Forward to close
It has been announced that Hull Forward, the economic development company for Hull, is to close. This follows the news that Yorkshire Forward, Hull City Council and the Homes and Communities Agency (HCA) reluctantly confirmed that there will be no funding towards the running of Hull Forward beyond 30th September 2010, due to significant public sector funding cuts across the country. Without funding, the company will be obliged to cease operations at this time with a full closure expected by the end of the calendar year. The company has entered into a consultation period with the company's 34 employees and seconded staff and is exploring every opportunity to help the staff facing redundancy in the event that further funding is not forthcoming.

Stamford Homes chosen as preferred developer in Flemingate regeneration
Wykeland Group, CP Group and Quintain Estates, the consortium behind the regeneration plans for Flemingate in Beverley, East Riding of Yorkshire has chosen Stamford Homes as the new preferred developer for the residential part of the project. Outline planning permission for the regeneration of the 17 acre former factory and museum site was approved by the Government in 2009. Plans include the construction of 130 new homes and is expected to create 640 new jobs.

North Lindsey College learning centre officially opened
A new £1.5 million learning centre in Scunthorpe has been officially opened. The new Beacon House and Success Centre is located at the Kingsway Campus of North Lincolnshire College. The new facility houses provision for painting and decorating courses, foundation learning and a success centre for students with disabilities and learning difficulties.

Anglian Water submit plans to extend Barrow-Upon-Humber Plant
Utilities firm, Anglian Water is seeking planning approval for a £3.4 million extension of the company's existing treatment plant at Barrow-Upon-Humber, North Lincolnshire. If approved, it is believed that the works could be completed in May 2011.

Beverley Memorial Hall plans on hold
Plans for the £1.5 million redevelopment of Beverley Memorial Hall have been placed on hold, due to a lack of funding for the project. Having recently received planning permission by East Riding of Yorkshire Council, the Memorial Hall trustees have stated that work is still ongoing and when the economy has improved, and Lottery funding freed up, they will try again. 

MARKET NEWS

Bemrose Booth enters administration
Printing firm Bemrose Booth has entered into administration, following the announcement of 160 redundancies at the companies Derby headquarters and factory. A further 26 employees have been made redundant at its factory in Kingston upon Hull, which previously employed 125. Joint Administrators, David Rubin and Henry Lan, have stated that the emphasis was now on trying to save the viable parts of the business.

ADM Cocoa ends production
The Kingston upon Hull based ADM Cocoa factory has ceased production following the news in March that the plant would cease production on July 1st 2010.

Kesa Electricals returns to annual profit
Kesa Electricals, owners of retail chain Comet, has announced a return to annual profits. The Europe-wide group reported pre-tax profits of £69.6 million in the year to April 30th. However, the group have also reported a 1.4 percent drop in like-for-like sales at its Comet stores, following a difficult second half. The firm, which has significant operations in Kingston upon Hull, has attributed this fall to tougher competition and bad UK weather at the start of 2010. Despite this, Kesa has stated that it has seen a welcomed boost from an increase in television sales, up 30-35 percent, for the World Cup across main markets. It said it would stick to its strategy plan announced in December 2009 to bolster profits and focus more on web sales, which helped annual online revenues increase by 8.9 percent in the Comet business. The group also plans to revamp 40 Comet stores this year, following successful trials of its new format.

Caravan firm secures funds for expansion plans
Based in Kingston upon Hull, Normandy Caravans has secured an undisclosed amount of funding from Barclays Corporate to develop new products. It is believed that this will continue its expansion into the UK market and drive an increase in sales. Normandy Caravans has predominantly supplied the export market, particularly dealing with customers in Belgium and Holland, but in recent years, it has developed a greater presence in the UK market and trebled its workforce.

North East Lincolnshire Council outsource services to Balfour Beatty
The multi-million pound 10 year contract between which will see North East Lincolnshire Council outsource services to construction firm Balfour Beatty has been signed. Around 300 council employees will transfer to the firm, which will work alongside the council to deliver highways services, regeneration and property and technical services.

Midgleys announces relocation plans
Fish filleting firm Midgleys has announced its intentions to close its facility in Kingston upon Hull and relocate its operations to Grimsby. 41 employees at the firm have been offered the chance to relocate to The Seafood Company in Grimsby, which already prepares and packages its products. Midgleys has stated that the cost of transporting fish between sites did not make commercial sense. The firm has entered into a 30-day consultation period with staff.

TSC Foods launches new range
North Lincolnshire based food manufacturers TSC Foods has re-launched its Glorious! soup and sauce range, adding reduced calorie options, new flavours and new packaging and marketing of the brand.

Andrew Jackson opens Grimsby office
Law firm Andrew Jackson has opened an office at Europarc’s Innovation Centre. The office will see lawyers from the Kingston upon Hull based firm using the facility in Grimsby as appointments suit. The firm have stated that its decision to open the office has been driven by client demand as it has seen an increase in work from this area, particularly in the food, fish, transport, engineering and renewables sectors. 

MERGERS AND ACQUISITIONS

Bempton Holiday Park sold
The Hawthorns Holiday Park at Bempton, near Bridlington, East Riding of Yorkshire, has been acquired by a private investor for £3.3 million. The 8.8 acre park has 124 fully serviced holiday pitches and has an occupancy rate at over 90 percent. The investment is therefore seen as offering a secure long term income. The sale was overseen by the Leeds office of Colliers International. 

JOBS GAINS AND LOSSES

Can-Pack UK has announced that it has created an additional 12 jobs at its plant in Scunthorpe, North Lincolnshire. The firm has stated that it is still committed to installing of a second production line in Scunthorpe at a cost of more than £10 million, depending on market conditions. It is believed that this would create an additional 100 jobs in the town.

32 support staff roles and 5 teaching positions are to be lost at Sir Henry Cooper School in Kingston upon Hull in an attempt to reduce its debts.

26 jobs have been lost at printing firm Bemrose Booth in Kingston upon Hull following the news that the firm has entered into administration.

12 jobs have been lost at the Bradken Foundary in Scunthorpe due to a slowdown in orders at the firm. 

CONTACT

For further information regarding the Market Intelligence Bulletin, please contact Dominic Chapman on 01482 596781 or e-mail research@humberep.co.uk