HUNTSMAN is on the brink of finding out if it will be given vital grant aid to develop a new plant on Teesside.

The company wants to build a low-density polyethylene production (LDPE) facility, which would create up to 200 jobs on the Wilton International chemicals site.

The US-owned company applied to the Department of Trade and Industry for a Regional Selective Assistance (RSA) grant that would form the backbone of the project, which will cost about £210m.

Trade journal European Chemical News (ECN) has reported that the company will find out the result of the application in the next few weeks.

ECN said the future of the 400,000 tonne per year LDPE plant hinged on grants.

Doug Culpon, Huntsman's vice-president for European petrochemicals, told ECN the project was a matter of urgency.

The Northern Echo was first to reveal that Huntsman was investigating building the plant to soak up its excess ethylene capacity on Teesside.

The group's ethylene cracker plant has a capacity of 865,000 tonnes a year, all of which is sold to third parties, with an undisclosed amount exported. Building an LDPE plant at Teesside would yield higher added value for the ethylene produced.

Huntsman is understood to have held talks with contractors and suppliers about the project.

A Huntsman spokesman said: "The project is still under consideration, but as yet, no final decision has been made."