The automotive sector in Wales has received a major boost with confirmation that Ineos Automotive has chosen Bridgend for its new 4x4 off-road vehicle that could create up to 500 jobs.
With a factory in Portugal providing components, the assembly plant for Ineos will be next to the Ford engine plant, which will close next year with 1,700 job losses, at Brocastle.
As revealed by BusinesLive earlier this week, production is scheduled to start in early in 2021, initially creating 200 jobs, but which longer-term is expected to grow to 500.
The project will also support more jobs in the wider Welsh automotive supply chain, where there are around 150 firms.
Ineos' 4x4 Grenadier special utility vehicle (SUV), inspired by the Land Rover Defender, will be located at a new 250,000 sq ft factory at Brocastle Business Park.
It will have a production capacity of 25,000 vehicles a year, with a mooted price tag of £50,000.
The £600m investment from Ineos Automotive, part of chemical and energy giant Ineos owned by billionaire Sir Jim Ratcliffe, has received undisclosed financial backing from the Welsh Government, but with support also from the UK Government.
Ineos has in turn signed up to the Welsh Government' s economic contract, with support being linked to demonstrating responsible business practices.
Ineos is acquiring 14 acres of land from the Welsh Government at Brocastle Business Park for the project, where there are longer terms plans to create a new manufacturing cluster.
Alongside Ineos' factory, in phase one there is potential for a further 500,000 sq ft of new industrial, research and office space.
The site extends to more than 100-acre.
Ineos executives said Brexit has been hanging over the project since the start, so they always knew about the uncertainty for the industry of leaving the EU.
“We obviously hope there is a deal, but we are two years away from the start of production so there will be a lot of water under the bridge before then,” said one executive.
“Whatever happens, we are prepared to take it on the chin.”
Ineos chairman Sir Jim said: “We have looked long and hard at possible manufacturing locations for Grenadier across the world with lots of good options to choose from.
“The decision to build in the UK is a significant expression of confidence in British manufacturing which has always been at the heart of what Ineos stands for.”
Economy Minister Ken Skates said:“This is a huge vote of confidence in the workforce and economy of Wales at an incredibly challenging time.
“Not only is this good news for Bridgend - and I am sure the first of many exciting announcements for the area - but it also proves that Wales remains an attractive place to invest despite ongoing Brexit uncertainty.
“Our work to support Bridgend in the wake of Ford’s proposals will not stop here and we will continue to do all we can to attract new business opportunities, to support Ford workers and to ensure an exciting future for the town.
"I am delighted to welcome Ineos Automotive to Wales and delighted that they are the latest in a line of prestigious companies to sign up to our economic contract, designed to drive growth and responsible business behaviours in companies.
The health and wellbeing of workers is already an important part of Ineos’ ethos and this is evidenced in the economic contract.
“I look forward to seeing the site develop ready to begin production in 2021.”
Secretary of State for Wales, Alun Cairns, said: "Ineos' investment will provide a welcome boost to our automotive sector and to this part of Wales, creating important jobs which will contribute to a strengthened economy.
It is also a clear demonstration of confidence in the UK economy.
“We’ve been working closely with the company to bring this investment to Wales and are supporting the industry via our Industrial Strategy and Automotive Sector Deal, setting out our vision of how government and industry can work together to solve some of the greatest challenges affecting this sector.
“There have been some significant automotive investments to Wales over the last few years, including at Aston Martin in St Athan and together with the Welsh Government we will continue to provide incentives for firms like Ineos to make Wales their home.”
Business Secretary Andrea Leadsom said: “Ineos' investment in Bridgend is a vote of confidence in the area’s highly skilled and talented workforce, and in the strength of our automotive industry.
“It is also further evidence that the UK is the best place to develop the latest automotive technologies. That is why the UK Government is investing nearly £1.5bn through our modern Industrial Strategy to ensure our world-leading status is maintained.”
General secretary of the Unite union, Steve Turner, said: "This is welcome news not just for Bridgend and the Welsh economy, but the wider automotive industry.
“I am seeking a meeting with Jim Ratcliffe and the Ineos team behind this venture to discuss the announcement in more detail and the opportunities it creates for both investment and direct jobs at the plant as well as the wider UK supply chain and logistics operations.
“Unite and its members are the beating heart of the UK’s automotive industry. We play a crucial role in working with major employers, component manufacturers, logistic companies and government at every level to ensure the UK car industry remains a world leader.
“We trust we will have the opportunity to work with Ineos to ensure its new Bridgend facility goes from strength to strength and is a source for decent, skilled, well paid jobs and apprenticeships for coming generations in the years ahead.”
