A World Class Offshore Sector

OFFSHORE TEES VALLEY

Tees Valley is one of the biggest centres for offshore fabrication, oil and gas and subsea supply chain in the UK. With around 3,500 companies involved directly or indirectly in the industry, the area is a key contributor to the national economy and has significantly contributed to the oil platforms and heavy engineering for the North Sea. This expertise is still working heavily in oil and gas and is also transitioning into renewable energy, particularly offshore wind.

TEES VALLEY. INVEST WITH CONFIDENCE.

Tees Valley is renowned for its industrial centre, which is the heart and soul of the economy. The region has an established history and expertise in business and industry and has a world-class reputation for delivering large-scale projects across key sectors, such as oil & gas, advanced manufacturing & engineering, chemicals and processing, renewables, logistics and automotive.

The deep water ports of Teesport and Hartlepool Port, make Tees Valley ideally positioned for servicing the North Sea and offshore industries. The area offers expert offshore fabrication facilities as well as prime land that is ripe for large-scale investment. The Enterprise Zone sites provide access to a range of facilities, as well as an excellent supply chain and they also offer financial incentives for potential investors, such as Enhanced Capital Allowances.

But Tees Valley’s main advantage over other UK and global locations is its low operating costs. Rents and rates in Tees Valley are about half of most major cities.

Wage rates are about 92% of the national average, and this, combined with added financial incentives available on sites and premises, makes Tees Valley a great location for new investment or expansion.

Major projects which have recently commenced their civil engineering works include MGT Power in Redcar, who are constructing a £650m renewable energy plant, as well as announcements by Sirius Minerals and Australian firm Peak Resources to establish mineral processing plants in the region. These three investments alone represent well over £1 billion of new investment, clearly demonstrating the confidence companies have in Tees Valley and a clear indication of our global reputation for successful manufacturing.

These companies have chosen Tees Valley because of the logistics and industrial infrastructure, supply chain, skills and support that is available to secure and ensure the successful operation of our major industries.

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Tees Valley has one of the UK’s greatest concentrations of companies operating in the offshore oil and gas, subsea, decommissioning and offshore wind sectors. The supply chain is made up of over 400 direct and 3,000 indirect companies that employ over 4,250 people and includes industry leading names, including CATS, ConocoPhillips, Able, Amec Foster Wheeler, Jacobs and Heerema.

OIL AND GAS FABRICATIONWith its long history of offshore engineering, Tees Valley has many expert fabrication companies in the offshore sector. It is also one of the UK’s largest cluster of subsea cabling and trenching companies, plus excellent offshore fabrication facilities and port sites.

SUBSEAMajor subsea service providers are resident in Tees Valley, which they chose for its prime geographic location and support services. This has created a hub of expertise operating globally in the renewables, oil and gas and telecommunications sectors.

DECOMMISSIONINGTees Valley has many advantages to offer the offshore decommissioning sector. With substantial available quayside and water depths ranging from 9-11m, the region offers a ready-made solution to the offshore industry.

OFFSHORE WINDOffshore wind presents a wide range of exciting opportunities in Tees Valley and is an area with real potential for growth in the region. There is already a supply chain of over 400 companies and Tees Valley has been awarded UK Government CORE status as a Centre for Offshore Renewable Engineering.

TEES VALLEY OFFSHORESECTOR

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Tees Valley is a key centre for the oil and gas sector in North East England and the UK and has significantly contributed to the oil platforms and heavy engineering for the North Sea. The region has one of the UK’s greatest concentrations of companies operating in the oil and gas industry, and one of the UK’s largest cluster of subsea cabling and trenching companies, making it one of the most complete and integrated supply chains in the country.

The area is ideally located on the North East coast and there is prime land available for investment that offers access to the North Sea and offshore industries.

Tees Valley is first choice for Shell’s Brent Delta DecommissioningThe North Sea oil and gas industry marked a significant moment when, in May 2017, the Brent Delta topside was towed to Tees Valley to be decommissioned. Over the next 10 months, the Brent Delta will be dismantled with over 97% of the structure being recycled.

Shell’s Brent oil field, which lies to the north east of the Shetland Isles, is one of the largest in the country and, at its peak, produced more than half a million barrels of oil a day. The field commenced decommissioning in 2011 and one of its four large platforms, Delta, has now made its way to Hartlepool in Tees Valley to be dismantled. The decommissioning of the 24,200 tonne Brent Delta topside is the largest single piece North Sea decommissioning project undertaken to date. The topside is the heaviest single piece ever lifted offshore and it was lifted and transported by a new purpose built vessel, the Pioneering Spirit. The Pioneering Spirit, developed by Dutch Heavy Lift specialists Allseas, is a new £2.5bn vessel and is the world’s biggest ship. It is equal to six Boeing 757 planes in length, has a deck space the size of six football pitches and can lift up to 48,000 tonnes.

To facilitate the arrival of the topside, Able UK had a new bespoke quay designed and constructed. The new quay is the strongest in Europe and can accommodate the largest structure that the Pioneering Spirit can handle. The quay, and its associated developments, represents an investment of £28m. This large investment will provide benefits that will extend beyond the Shell Brent project. The new facilities are unique in the UK and put Able and Tees Valley in a very strong position to secure ongoing business in a field of activity that is set to increase significantly, with more than 100 platforms set to be completely or partially removed over the next decade in UK and Norwegian waters. To bring the first major project to Tees Valley is a huge coup for the area.

Deep water ports

on the Tees and at Hartlepool Port cover

over 1000 acres of land and are an integral

element of the wider industrial area.

OIL AND GAS IN TEES VALLEY

Deep water ports on the Tees and at Hartlepool Port cover over 1000 acres of land and are an integral element of the wider industrial area. Both have excellent transport links by road, rail and air and offer lock-free access to the North Sea. They also provide excellent warehousing, logistics and supply chain expertise.

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Tees valley companies have been

chosen by DONG Energy to provide services for the world’s largest

offshore windfarm.

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Hornsea Project One Boosts Tees Valley

DONG Energy’s Hornsea Project One will be the world’s largest offshore wind farm and the first to exceed 1GW capacity. The project is located 120km off the Yorkshire Coast and will meet the electricity needs of well over one million UK homes and Tees Valley based companies are playing a vital role in its development.

JDR Cables has won the contract that will see the company design and manufacture 242km of array cables, covering two thirds of the total wind farm capacity. This represents the largest array cable award in JDR’s history and they will manufacture the cables at their state-of-the-art facility in Hartlepool. Billingham-based Offshore Structures Britain has won the contract to manufacture 56 transition pieces that will link the monopole foundation wind turbines with the towers. The facility has been fully upgraded since 2015 and employs close to 200 people.

In November 2016 it was also announced that Darlington-based Deep Ocean had won a multi-million pound contract to transport and install the cables for the project. Deep Ocean have invested heavily in world-class installation and trenching technology. Hornsea Project One is a pioneering project for the UK and for the electricity sector. When built, it will be comfortably the world’s largest offshore wind farm. For contracts of this size to be awarded to Tees Valley based companies shows considerable confidence in the area to deliver large-scale offshore wind projects.

Offshore wind presents a wide range of exciting opportunities in Tees Valley offering real potential for growth, and the area is already the home of major players in the industry, such as EDF Energy, Offshore Structures Britain and MPI Offshore. The extensive facilities, such as a deep-water port complex, coupled with the existing infrastructure and availability of large areas of industrial land, make Tees Valley an exciting investment opportunity for offshore wind companies and their supply chain.

There is an increasing demand to build renewable energy assets, in particular offshore wind, and Tees Valley has been awarded UK Government CORE status as a Centre for Offshore Renewable Engineering. This is in recognition of the area’s existing port infrastructure, including deep-water access, available skills and logistics and the presence of an experienced supply chain, which will enable rapid growth in the offshore wind sector.

The region benefits from good access to supply chains and from 10GW of wind farm development within easy reach of port sites. Its main advantage over rival locations is its proximity to the northern North Sea and Dogger Bank, which experiences higher average wind speeds than anywhere else in Europe.

OFFSHORE WIND OPPORTUNITIES

SITES AND PREMISES Tees Valley has a vast array of sites and premises available that provide access to the deep-water ports on the River Tees and other utility services and logistics. These include Enterprise Zone sites, which offer financial incentives for companies who locate there, and the newly formed South Tees Development Corporation site, that includes the site of the former SSI Steelworks.

Tees Valley Enterprise Zones are made up of 12 individual sites with a total area of over 425 hectares. They encompass a wide range for sites, including a number with existing office space as well as units on large cleared industrial sites. All the Enterprise Zone sites offer excellent transport connections, with road links to the A66, A19 and A1(M), main line railway stations offering passenger and freight services, an international airport and access to one of the UK’s largest deep water ports, Teesport. On each site, businesses are able to benefit from tax relief, simplified planning regimes and superfast broadband. Four sites offer Enhanced Capital Allowance, with a further eight offering Business Rate Relief.

Enhanced Capital Allowance Sites

Enhanced Capital Allowances are available on the larger industrial Enterprise Zone sites and it is anticipated that they will be most suitable for companies looking to make significant investment in plant and machinery, particularly in the renewable energy, chemicals and advanced engineering sectors. Companies locating to South Bank Wharf, Hartlepool Port Estates, New Energy and Technology Park and Wilton International can apply to receive first year capital allowance at 100% on qualifying plant and machinery to a maximum of £100 million to offset against corporation tax when the investment is made before March 2020. Tees Valley is one of only a small number of areas across the country that can offer large-scale occupiers Enhanced Capital Allowances.

Business Rate Relief SitesCompanies locating to one of the eight Enterprise Zones offering Business Rate Relief may quality for up to £55,000 a year of rate relief over five years, totalling £275,000. These sites are ideal for small and medium sized business which form the supply chain of the area’s heavy industry or which are part of the area’s emerging fast growing digital sector. The Business Rate Relief sites are available in all corners of Tees Valley and include; Queens Meadow Business Park and Oakesway Industrial Estate in Hartlepool; Teesside Advanced Manufacturing Park and the Historic Quarter in Middlesbrough; Kirkleatham Business Park in Redcar and Cleveland; Belasis Business Park and Northshore in Stockton-On-Tees and Central Park in Darlington. More details of all of these sites and the services and utilities they offer are available on the website www.teesvalley-ca.gov.uk

The newly established South Tees Development Corporation is the first Mayoral Development Corporation outside of Greater London. The area covers approximately 4,500 acres of land to the south of the River Tees, in the Borough of Redcar and Cleveland, and includes the site of the former SSI steelworks as well as other industrial assets. The area benefits from river access and includes the deep-water port of Teesport, England’s largest exporting port. It has been set up to promote the economic development of Tees Valley by enhancing assets in the South Tees area to create further opportunities for business investment and economic growth.

Boho, Middlesbrough

Fusion Hive, Stockton-on-Tees

South Tees Development Corporation Redcar and Cleveland

South Tees Development Corporation

Hartlepool Port Estates

Centre for National Biologics, Darlington

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SKILLED & AVAILABLE

WORKFORCE

Tees Valley’s industrial heritage means it has an available and affordable workforce equipped with the necessary skills and expertise required in the offshore sector. Tees Valley’s location and transport connections give it a wide catchment area for skilled labour. The area is also home to two excellent universities, several high-ranking colleges and a number of specialist training providers. All offer excellent bespoke training, providing businesses with the skilled employees they need. Wage rates in Tees Valley are 92% of the national average, making it a cost-competitive location for investment. Employees in the region work more hours than the UK average and businesses also benefit from the lowest staff turnover than any other UK region, ensuring a secure and highly efficient workforce.

A world-leading health, safety and survival training provider across the offshore, wind and industrial sectors. Accredited training is delivered via state- of-the-art training facilities, each equipped to simulate a real-life environment.

TWI are specialists in manufacturing, engineering materials and joining and are a global leader in technology engineering, providing research and consultancy services.

TTE is UK’s largest technical training organisation in the engineering, process and oil and gas sectors, specialising in apprenticeship and technical study programmes, bespoke and accredited courses and consultancy services.

High and low-voltage training specialists, the Faraday Centre provide electric courses to a range of industrial sectors, including oil and gas, marine and offshore, engineering and construction and chemical.

There are several world-class training facilities for the offshore sector located within Tees Valley offering businesses a large pool of skilled workers.

C-State has been created to address the skills gap in the subsea engineering and service sectors, providing specialist training and education to the entire industry. The purpose built facility offers a range of subsea courses from apprenticeships to higher education and industry recognised accredited training and trainees have access to a dedicated 200hp hydraulic remotely operated vehicle.

NETA provides fully accredited technical training service to the local engineering, offshore, renewable and petrochemical industries.

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The Tees Valley Combined Authority drives economic growth and job creation in the area. It is a partnership of five councils; Darlington, Hartlepool, Middlesbrough, Redcar & Cleveland and Stockton-on-Tees, working closely with the business community and other partners to make local decisions to support the growth of the local economy. The Combined Authority is chaired by Ben Houchen, the first Tees Valley Mayor. Under the devolution deal with Government, it is taking on new responsibilities previously held by Westminster and Whitehall; for transport, infrastructure, skills, business investment, housing, culture and tourism.

Tees Valley Combined Authority works with private sector partners to help businesses looking to invest in the area and Tees Valley has been described by the President of the Confederation of British Industry (CBI) Paul Drechsler as “a fantastic example of public-private partnership - the strongest and most ambitious in the country”. The CBI represents 190,000 businesses across the UK.

The Combined Authority, and Local Enterprise Partnership, helps new businesses looking to invest in the region. The dedicated Business Investment team give advice and support to new or relocating businesses to make sure they find the right location, provide information on the workforce, training and skills available in the area and help access support services. This support makes investing in Tees Valley easier than ever, and underlines what a great place Tees Valley is to live and work in.

SUPPORT FOR INVESTORS

The Tees Engineering Network (TEN) has been set up to champion engineering companies in the Tees area. It provides a forum for SMEs to promote themselves to other engineering companies in the region and for larger engineering companies to present any new opportunities, ensuring the local supply chain have an early understanding of any up and coming projects. TEN organise and promote events throughout the year, where businesses and SMEs can get together to network and learn about new opportunities in the area.

TEN is sponsored by four high profile local companies; Axiom Engineering Associates Ltd, Francis Brown Ltd, Nortech Solutions and Industrial Marine Hydraulics. These companies are proud of their engineering heritage and local roots

and have a vested interest in promoting the region. The events are high profile and extremely popular and have attracted speakers from Cummins Engines, Crossrail, HS2, Sirius Minerals, MPI Offshore, JDR Cables and EDF Energy.

Tees Valley Combined Authority is at the forefront of public-private sector working and just one example of this is the relationship with the Tees Engineering Network, delivered and driven by the private sector, but supported and fully endorsed by the Combined Authority. Working alongside the network, Tees Valley Combined Authority offers support by helping to secure high profile speakers and assists with event management.

Tees Engineering Network. Supporting the Supply Chain in the Tees Area.

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Cavendish House, Teesdale Business Park Stockton-on-Tees, Tees Valley TS17 6QY T: 01642 524400 E: info@teesvalley-ca.gov.uk

www.teesinvest.co.uk

TeesValleyCA @TeesValleyCA @TeesValleyCA