A CHEMICALS firm known for operating North-East plants could bring another division to the region after confirming an ambitious automotive venture.

Ineos is pushing ahead with plans to make an “uncompromising” off-road vehicle for domestic and export markets.

It would be the first time the business, known for making the raw materials used to manufacture paints, plastics and mobile phones, has made a vehicle.

The company told The Northern Echo it hopes to make “tens of thousands” a year by filling a market void caused by Land Rover’s decision to stop production of the iconic Defender.

Last night, a spokesman told the Echo the firm couldn’t rule out building the 4x4 in the North of England.

He revealed it is now assessing potential factory sites across the UK and Europe with good access to roads and ports and fleshing out vehicle designs, adding it has founded a separate automotive division to oversee the work.

The North-East already has a rich pedigree in car manufacturing, with Nissan’s Sunderland factory regularly making more than 500,000 vehicles a year, many of which are exported through the Port of Tyne.

The spokesman said bosses were targeting “farmers, foresters and people who want to go exploring” with the 4x4, adding production goals would be realistic and mirror annual Defender sales of between 15,000 and 20,000.

He added: “We would like to make it for exports as well as the home market.

“We hope that will encourage the numbers up.”

Ineos, which operates chemicals plants in Seal Sands, near Billingham, and Newton Aycliffe, County Durham, says it is prepared to spend “many hundreds of millions on the project” to deliver a “step change in build quality and reliability”.

The plans are being spearheaded by Jim Ratcliffe, Ineos chairman, who remains a huge fan of the Defender.

However, Mr Ratcliffe confirmed Ineos’ model, made possible after six months of feasibility studies, won’t be a carbon copy, adding it will offer a real alternative to “jelly-mould” market rivals.

He added: “I am a great admirer of the old Land Rover Defender and have enormous respect for its off-road capability.

“But, while our off-roader might share its spirit, our car will be a major improvement on previous models.”