THE importance of companies such as Great Lakes to the region's economy had been recognised this year with the establishment of a new organisation.

The Pharmaceutical and Speciality Cluster Limited, the first body of its type in the UK, represents more than 100 companies in the region and aims to become the North-East's voice of the industry.

Chief executive officer Dr Stan Higgins said: "The announcement from Great Lakes is disappointing news, especially when the recent formation of the Pharmaceutical and Speciality Cluster was to assist companies like this.

"There is growing recognition of the importance of the speciality chemical industry to the economic well being of the North-East region.

"The new cluster has found that there are over 150 companies in their sector producing £4.5bn of the UK's GDP in the North-East.

"These companies employ about 14,000 people here and impact on the jobs of about 70,000 others.

Dr Higgins said speciality chemical companies such as Great Lakes were operating in a global market place and were under pressure to ensure they operated as efficiently as possible.

"In our region we do have some facilities that are amongst the best in the world.

"In these days of rapid technological advancement, the access to knowledge through research and development and funds for reinvestment into manufacturing facilities are key to ensuring the sustainability of these businesses," he said.

"Cluster companies are beginning to work more closely together to ensure that these issues are better understood by business leaders and government agencies alike.

"The cluster will be one of the vehicles used to help those affected by this news."