Business spotlight

North East Times Magazine throws a spotlight on the latest news, views, trends and technologies shaping the region’s economic and business landscape

Sage arena gets £20 million boost as region receives £100 million ‘levelling up’ package Investment

Plans to create a sprawling riverside business and leisure campus have received a £20 million boost.

Gateshead Council’s blueprint for The Sage arena, conference and exhibition centre has been backed by Westminster’s ‘levelling up’ fund.

Set for land on Gateshead Quays, officials say the “visionary project” will welcome more than one million visitors a year and create thousands of jobs.

It was backed as part of a wider £100 million-plus Government package for the North East under its flagship regional equalising strategy, with schemes in Redcar and Cleveland, Hartlepool and Northumberland also receiving support.

Hailing the impact of Downing Street’s financial help to The Sage scheme [pictured], Councillor Martin Gannon, leader of Gateshead Council, said: “It’s great the Government has recognised the benefits of development, especially during the current economic climate.

“As a council, we are dedicated to ensuring The Sage is delivered, so we can provide employment opportunities to residents of Gateshead and beyond.

“The economic benefits of The Sage will radiate out as local businesses and hospitality benefit from the increase of trade.”

Councillor Gannon also confirmed changes have been made to proposals around neighbouring hotels – planned for Gateshead’s Baltic Quarter – with the buildings now switched to another site as part of “cost efficiencies”.

He added land occupied by the hotels in original designs has been reclassified as an urban park.

Elsewhere, Redcar and Cleveland Borough Council has been awarded £19.9 million of ‘levelling up’ cash to make significant improvements to market town Guisborough and highway changes at Coulby Newham, which bosses say will pave the way for 800 homes.

Staying in the south of the region, Tees Valley Combined Authority has received nearly £18 million to create new cycling and walking routes, with Hartlepool Borough Council receiving £16.5 million to create a so-called production village, which officials say will boost opportunities in the creative sector. Support also came for the North East Combined Authority’s work on decarbonisation, with the body awarded £19.5 million to fund a fleet of more than 50 electric buses and the installation of nearly 100 vehicle chargers.

And ministers have handed Northumberland County Council £14.7 million to build cycling and pedestrian lanes between Hexham and Bedlington.

Defence firm Leonardo to create 200 jobs in city base Employment

A military helicopter maker has pledged to create 200 jobs after landing in the North East.

Leonardo is opening a research and development base on Newcastle’s Helix science park.

The company, which is also known for Royal Air Force electronics work, says the move will deliver more than £185 million to the region’s economy across the next decade.

Bosses say its Tyneside hub will focus on advancing new sensing, security and vertical lift products.

Clive Higgins, Leonardo UK chair and chief executive, said: “Our Newcastle site will allow us to expand even further.”

The business’ arrival was supported by Invest Newcastle.

Jennifer Hartley, director of the organisation, which is part of NewcastleGateshead Initiative, said: “This represents a major boost for the city’s burgeoning defence and aerospace sector.”

The North of Tyne Combined Authority also made more than £400,000 available from its Inward Investment Fund to aid the firm’s move to the region.

University of Sunderland plans £250 million campus transformation Education

A university has unveiled “game-changing” £250 million redevelopment plans.

The University of Sunderland is overhauling its Wearside base in a ten-year programme bosses say will bolster its “strong reputation for high-quality learning and teaching”.

According to the blueprint, its St Peter’s campus will undergo a near £100 million renovation to create a new international business school, library and student centre, with further work carried out to strengthen provision of computer science and engineering courses.

A second phase will include the Sunderland Health Innovation Zone and a sports ground.

A number of existing buildings and student accommodation will also be refurbished.

Tekmar Group continues investment talks Engineering

A marine engineer has extended talks with a prospective financier it says would fuel “ambitious” growth plans.

Darlington-based Tekmar Group is speaking to a global energy sector investor.

Bosses say an agreement would support organic and acquisitional expansion at the firm, which includes the Pipeshield International and Subsea Innovation operations.

Sir David Bell, vice-chancellor and chief executive, said: “This investment reflects the standing and confidence of the university as it seeks to fulfil its lifechanging purpose.

“It reflects too the transformational change that is taking place in the city of Sunderland, making it a great place to study, live and work.

“Students and staff will benefit from state-of-the-art facilities, enhancing our strong reputation for high-quality learning and teaching, and our society-shaping research and knowledge exchange activity.”

Sir David revealed the investment will also include work on the university’s London campus, to create a new Canary Wharf base and refresh student and staff facilities.

Farooq Hakim, chair of the university’s board of governors, added: “Such an investment will protect and enhance the long-term educational and financial sustainability of the university.”

It would also retain the business’ place on the London Stock Exchange’s AIM sub-market, and build on £10 million-plus contract successes.

Pipeshield International - known for subsea mattresses that defend lines and cables from damage - recently picked up “multiple contracts” worth more than £8 million to design and make protective equipment for Middle East projects.

And Subsea Innovation is working on a launch and recovery system – used to operate underwater robots – with the near £2 million deal including delivery of an A-frame, winch and hydraulic power unit.

£35 million property fund provides jobs hope Property

Development bosses say the region is primed for thousands of jobs following the launch of a £35 million property purse.

FW Capital and the North East Local Enterprise Partnership have unveiled the North East Commercial Property Investment Fund.

Officials say it has potential to create 5600 posts and develop 140,000sq metres of business space.

Providing loans of up to £7 million, they add the fund will support speculative developments for new or refurbished projects across Northumberland, County Durham, Gateshead, Newcastle, North and South Tyneside and Sunderland.

They also say repayments will be pumped back into new schemes, creating investment of £119 million in commercial property over 15 years.

Helen Golightly, North East Local Enterprise Partnership chief executive, added: “Job creation and the growth of key sectors in the North East are being held back by the market not delivering sufficient high-quality business premises.

“There is a severe undersupply of Grade A commercial space, which is limiting some types of inward investment or current regional businesses to scale to the next level.”

Armstrong Watson grows with Joseph Miller deal Finance

An accountancy, business and financial advisory firm says it is primed for further market success after completing a merger.

Newcastle-based Armstrong Watson has bought accountancy practice Joseph Miller.

Bosses say the deal provides “an incredibly strong foundation to grow further in the North East.”

All 22 Joseph Miller staff have joined Armstrong Watson, including partners David Gold, Chris Reah and Edith Chapman.

Growth plans will help bowling firm ‘remain market kingpin’ Hospitality

A hospitality boss behind bowling and e-sports ventures says “the shackles are off” to achieve “endless possibilities” after confirming London and Irish expansion plans.

Tim Wilks has unveiled major growth blueprints for Lane7 and Level X, which he says will build on “electrifying” progress.

According to the proposals, two London sites will open before the end of the year, with further Lane7 bases set for Dublin, Bath and a second hub in Birmingham, which will operate as the group’s largest venue.

Elsewhere, the business plans to roll out “several” Level X launches, which will include a unit in Middlesbrough featuring electronically-synced karting in a so-called Drift Hall.

Tim said: “When we launched Lane7 ten years ago in Newcastle, the response immediately told us we had a pioneering concept.

“And we’ve now reached a stage where there is not only continued huge demand for our product, but also an expectation that we keep pushing the boundaries of late-night socialising.

“Making plans for an aggressive European offensive and to land hard in

London is an enormous statement of intent.”

He added: “We’re so excited to unleash Drift Hall, in Middlesbrough.

“It is an indoor karting track, but racers will be able to drop virtual banana skins and leave virtual oil patches to slow or stop rival racers.

“We broke the mould and disrupted a social scene crying out for evolution, and our expansion plans keep us firmly at the forefront of UK hospitality.”

Expansion in pipeline at tube maker Engineering

A tubing maker has eyes on new jobs and US expansion following financial backing. Advanced Composites Engineering aims to grow after £150,000 North East Growth Capital Fund support helped it secure a manufacturing and supply deal with a global industrial cleaning kit firm.

Don Robinson, director at the Cramlington-based company, said: “2022 was a challenging but successful year, and we’re now well set to build on what we’ve achieved.”

The North East Growth Capital Fund is supported by the European Regional Development Fund, and managed by Team Valley’s NEL Fund Managers.

Jane Siddle, NEL Fund Managers’ senior investment executive, added: “The business is in a strong position to take big strides forward.”

In Brief

A selected round-up of stories from across the region

Quantafuel gains backing for Wearside plastics plant Investment

A recycling company has received approval for a 100-jobs-plus factory.

Quantafuel Sunderland is building a Wearside plant.

Bosses say the base, set to open in 2025 at Port of Sunderland, will annually transform around 100,000 tonnes of plastic, such as soft food packaging, into raw materials for the petrochemical sector.

Winifred Patricia Johansen, Quantafuel Sunderland director, said: “We chose Sunderland as our first development as the port provides an ideal location, and the city has a good, skilled workforce to draw on.”

For more news and views across the North East, visit our website @ www.netimesmagazine.co.uk/news

Fabrication firm adds steel to rail station work Construction

A Middlesbrough fabricator is supporting a £34 million overhaul of the town’s rail station.

CB Construction (Cleveland) has secured a deal to fashion upgrades including a new ticket hall and staircase at the travel hub.

The firm is using materials bought from British Steel, which runs the Beam Mill, at Lackenby, near Redcar, and a special profiles plant in Skinningrove, east Cleveland.

Gary Sivills, CB Construction (Cleveland) managing director, said: “It’s great to play an important role in a scheme that will make a big difference to our hometown.”

The station project is being delivered by Network Rail, and a 75-metre platform extension has already been built to accommodate new LNER London services.

Tees Valley Mayor Ben Houchen, alongside the Tees Valley Combined Authority, has pumped more than £20 million in the scheme.

He added: “It’s fantastic to see CB Construction taking such a central role.”

Meanwhile, Mayor Houchen recently helped professional services firm Aon officially open a base in Thornaby, near Stockton, which it says will support future expansion plans.

Christine Wood, head of office for Aon Stockton and Newcastle, said: “The investment is a step forward for the business and the team.”