CHEMICAL company Huntsman marked the start of construction on its £200m polythene plant, which will help safeguard the future of the Tees Valley's process industry, and create hundreds of jobs.

President and chief executive Peter Huntsman said the investment had already attracted interest from companies that use polyethylene, which are considering relocating to the Wilton site in Teesside to be close to the plant.

He said the knock-on effect for the region's economy could be huge.

"If we come here in five years' time and we are exporting all of our product away from the region because other companies haven't moved to be here, then someone is not doing their job right," he said. The plant will be the largest of its kind in the world and create 120 skilled jobs for engineers and technicians, as well as more than 700 construction jobs during the two-year building phase.

It will also create hundreds of jobs in the supply chain.

The US company's decision to build the plant in Teesside has saved 750 Huntsman and contractor jobs at the North Tees and Wilton complexes and secured thousands more across the sector in the region.

Redcar MP Vera Baird attended yesterday's ceremony. She said: "Huntsman works well with its existing workforce and it knows that people on Teesside are skilful and adaptable."