Newspaper article The Journal (Newcastle, England)

Car Part Factory Will Go Ahead without Pounds 1m Grant

Newspaper article The Journal (Newcastle, England)

Car Part Factory Will Go Ahead without Pounds 1m Grant

Article excerpt

Byline: Iain Laing

NIFCO UK, the car parts manufacturer based in Stockton, is pressing ahead with plans for a new factory despite losing a pounds 1m grant.

Mike Matthews, managing director of the company on Yarm Road, said plans for a new production line within a few miles of their site have been hit by a One North East moratorium.

Nifco's plan - which they are determined to keep in the North East - is worth pounds 8m and will bring 90 jobs.

Mr Matthews said: "We are already being hurt by the cuts, even before the Comprehensive Spending Review kicks in.

"We were going to get pounds 1m from One North East, as a GBI (Grant for Business Investment), but that has now been blocked," said Mr Matthews. "It was going to cover 15% of the costs, but thankfully we have still managed to hold on to gap funding of pounds 1m.

"We need our factory on line by 2012 because we have already ordered the technology and new equipment we want, so we can't just leave it lying around."

And he warned: "The coalition have to look after the smaller, even ownerproprietor companies who are facing a very tough time. …

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