A PETROCHEMICALS firm is “shining” and could complement a major factory conversion with future expansion in the region.

Sabic has refused to rule out expanding its presence at Wilton, near Redcar, to build on changes to its Cracker plant, which makes goods for food packaging.

The optimism comes as nearby operator Sembcorp Utilities UK assesses the feasibility of a new gas-fired plant on the site of the former Teesside Power Station, capable of generating electricity for up to 1.5 million homes.

Redcar MP Anna Turley last night said the plans were a “statement of intent that could be an important part of the ongoing industrial regeneration of Teesside”.

If the project comes to fruition, it would follow intensive work at Sabic, which last week confirmed amendments to its Olefins 6 – Cracker – plant had been successful, with officials saying the changes have secured more than a thousand jobs at the company and across the supply chain.

The Cracker, which takes feedstocks and cracks apart components to derive new yields for further manufacturing use, has been adapted to take US ethane gas as a raw material alongside propane, naphtha and butane.

The Northern Echo understands half of what the Cracker produces goes into Sabic’s polyethylene Wilton plant, which is used to make items such as packaging, with the other half shipped to Germany, where it is used in polyethylene plants and other factories to help make goods such as milk bottles and car dashboards.

However, John Bruijnooge, Teesside site director, told the Echo he was looking into plans to build another plant on Wilton to keep some of those processes in the region, which he said would lower shipping and transport costs.

He also revealed Sabic will knock down old assets, which could pave the way for its expansion, give scope for existing companies to grow, or allow new firms to move onto the site.

Mr Bruijnooge admitted the plans were some way off but said Sabic officials have yet to “slap the door in my face”, adding there may be opportunities for the Government to offer support once Britain leaves the EU.

He said: “If I come up with ideas they will evaluate them.”

He also said the Cracker changes will provide fresh momentum as Sabic drives forward with growth plans and fully puts behind it previous job cuts brought on by a mix of increased foreign competition and the European recession.

Starting by referring to the impact of the Cracker upgrade, he said: “It is difficult to quantify.

“We employ 630 people every day on the site and have about the same number coming in to help us with all kinds of support services, such as maintenance and cleaning, so the significance of the impact in the community is very difficult to estimate.

“However, we have good confidence that we are here to stay.

“We are very happy to be here and the business is very happy it now has four raw material streams.

“We have the ambition to become the preferred supplier of petrochemicals in the world; that is our mission.

“We have come from a darker place and people feel a bit better.

“We made this quantum leap and are in continuous improvement mode.

“We cannot just sit back and wait. Look at Team GB, they did very well in the Olympics, but if they don’t practice in the next four years, don’t expect them to win so many gold medals.

“We cannot be complacent and think we are there now. Sabic is shining.”

Referring to the demolition of its old assets, which will help satisfy health and safety requirements, he added: “When Sabic bought the site from Huntsman, we inherited some assets that did not work.

“The assets will go but it is creating opportunities for new ones.”

Meanwhile, Sembcorp’s project, for which a planning application is still a distance away, could create up to 80 permanent operational jobs and support around 1,000 during the construction phase.

A spokesman for Sembcorp, which already supplies electricity and services to businesses at Wilton, said: “Nothing has been decided.

“However, Wilton has seen a significant increase in enquiries from new businesses with high power demands, which is why we are reviewing the options for additional on-site power generation.”

Ms Turley added: "A new power station at the site would enhance the existing infrastructure and capabilities, supporting current industries and those in the pipeline like the Sirius Minerals potash processing facility.

"It would also strengthen our potential for future inward investment projects.

"Obviously it is early days but this could be an important part of the ongoing industrial regeneration of Teesside.

“As the project progresses I will be monitoring the process closely, both in terms of the potential environmental impact for local residents, but also to make sure that job opportunities during construction and then operation of the station benefit local people.”