Teesworks and International Advanced Manufacturing Park in running for £200 million Rolls-Royce factory

Two North East business hubs are in the running to house a £200 million clean energy factory.

Teesworks and the International Advanced Manufacturing Park (IAMP) have been shortlisted as potential bases for a 200-job-plus Rolls-Royce heavy pressure vessels plant.

The company says the factory will make and assemble complex components for a fleet of small modular reactors (SMR).

A decision on its final location is expected in early 2023, with the industrial sites facing competition from a base on the Welsh border.

Teesworks – former steelworks land near Redcar – already includes turbine parts maker SeAH Wind and the BP-led Net Zero Teesside Power project, which promises a gas-fired power station with carbon capture and storage capabilities, with IAMP – which straddles South Tyneside and Sunderland – soon to be home to a huge Envision AESC electric vehicle battery factory.

Tees Valley Mayor Ben Houchen said: “Teesworks is fast becoming the place to do business in innovative net-zero projects and this facility – helping to drive forward clean energy power plants – would be a fantastic fit.

“Whatever the outcome, this goes to show big businesses and household names have their eyes on Teesside like never before.”

Councillor Tracey Dixon, leader of South Tyneside Council, said: “IAMP was conceived with the aim of securing sustainable employment opportunities for local people and the interest, and ultimately investment, it has attracted demonstrates we were right to be ambitious.

“We are already leading the way in low-carbon innovation and this facility would place South Tyneside right at the forefront of the green revolution.”

Tom Samson, Rolls-Royce SMR chief executive, added: “Our power stations will be built in British factories situated in the north of England or Wales, and will generate tens of thousands of long-term highly skilled jobs – accelerating regional economic growth.”