Mayor backs local businesses to drive revolution
Mayor Ben Houchen is backing local businesses to drive Teesside’s multi-billion pound low carbon revolution.
Later this year the nine leading companies, who were awarded contracts with a combined value of £4billion by Net Zero Teesside Power and the Northern Endurance Partnership, will start selecting their sub-contractors.
Speaking at stainless steel specialist Paralloy in Middlesbrough, the Tees Valley Mayor said the business was “a great example of where we’ve got the skills, the know-how and the people”.
Since his last visit two years ago revenue has soared, Paralloy has become one of the three most successful global businesses in its field and earlier this year it was awarded the King’s Award for Enterprise.
“I remember sitting down with the management here talking about wanting to go up to 300 to 350 employees and they’re already at 550 employees and planning even more growth,” said Lord Houchen.
“It’s an absolutely incredible business but it just goes to show exactly Teesside’s all about, what Teesside people are all about, and when they get the opportunity they take it – and Paralloy is an amazing example of that.”
Paralloy’s alloys are primarily used in the ethylene, ammonia, hydrogen, DRI (Direct Reduced Iron), aerospace and industrial gas turbine markets.
In June the Paralloy Group acquired Manoir Industries in France and Hi-Tech in Derbyshire, adding another 500 staff as well as major contracts with the French nuclear power industry.
The Group now has five foundries – including one at Billingham, its biggest site on Teesside – seven machine shops, multiple fabrication and welding sites and is currently supplying bespoke products for the three biggest petrochemical projects in the world.
“A big part of why I wanted to come back here today is to make sure that they’re doing incredibly well – which obviously they are – but also to see how I can help them get exposure to those opportunities with projects like Net Zero Teesside,” said the Mayor.
It was vital “to make sure we keep the pound in the area – which we all know goes a lot of further, supporting local jobs, supporting local businesses – and I think there’s a huge opportunity for Paralloy to get involved.”
Paralloy Group Chief Executive Robert McGowan said it would be a “great shame” not to be chosen to supply “the best tubes in the world” for projects on its doorstep.
BP’s H2Teesside project, for example, would complete Paralloy’s circular story: by locally manufacturing the reformer tube assemblies which are at the heart of the process for making blue hydrogen. It will then feed into the new Teesside industrial network, including Paralloy’s foundries in Billingham, helping them on their journey to net zero.
Lord Houchen also heard about the steps Paralloy has taken to manage its rapid expansion. “We’ve got some fantastic examples of how we have developed people to enable our growth,” said Mr McGowan. “They come from different walks of life as well as technical and non-technical backgrounds.”
“But,” he added, “there’s still a long journey ahead, so we’re really excited to work with the local authorities, colleges and schools to continue to develop local talent.”