Insider Media Limited

Staffordshire businesses JCB, Ceram Research and Moorland and City Railways (MCR) have revealed to Insider plans for their Regional Growth Fund (RGF) windfalls. However, the cash boosts – three of 20 across the West Midlands – came with a warning from Birmingham Chamber of Commerce Group, which urged businesses "not to lose sight of the bigger action needed" from government.

David Kemp, commercial director at Newcastle-under-Lyme-based MCR, said the company had secured £1.65m of investment in the second round of RGF funding. He said the cash would be used to help complete the restoration of 20 miles of track, including the freight line from Stoke to Cauldon Lowe.

Kemp said that the line could help transport up to 3.5m tonnes of cement once fully operational.

He said: "Our plan is to build a sustainable means of transport by taking lorries off the road and transporting by rail instead.

"The line will also pass through area where developments could be kicked off, as well as to Alton Towers, and we estimate that around 1,400 jobs could be created by the time the work is complete."

Also named as a successful RGF bidder was Stoke-on-Trent's Ceram. The materials consultant said it will use its undisclosed funds to develop energy-reducing firing technology for the ceramics industry.

Tony Kinsella, chief executive at Ceram, said: "The funding will allow us to fully test the new technology at an industrial scale and, if successful, will mean that ceramics manufacturers can cut their energy costs by a possible 25 per cent, allowing them to compete more effectively in the global market.

"We’ve estimated that, in the Stoke-on-Trent area alone, the industry could cut energy costs by £2m, resulting in hundreds of new jobs locally."

Rocester's JCB obtained a funding which a spokesperson confirmed would be used "to assist in the development of new engine technology."

In addition, Stoke-on-Trent-based Steelite secured funding which it said will create 200 jobs, The tabletop product supplier will use the funding to develop a new manufacturing facility producing bone China in the UK.

The Staffordshire businesses were four of 20 successful bids from the region.

Other winning proposals came from LNX Distribution; Zytek Automotive; Aeromet International; Alamo Manufacturing Services (UK); Herefordshire Council; Sunsolar Energy; Birmingham Post; Caparo Precision Strip; Angle Ring Holdings; Steelite International; Thomas Dudley; NDC Polythenes; Pargat & Co; Stoke-on-Trent Regeneration; Hinckley & Bosworth Borough Council; Advanced Engineering Supply Chain and Trac Group.

Birmingham-based IT company Elonex is set to transfer its electronics manufacturing and service centre from China to West Midlands with its funding, while Worcester's Aeromet will develop new manufacturing processes.

Advanced Engineering (AE) Supply Chain Investment Fund is set to fund R&D and capital investments, mostly for SMEs across Birmingham/Solihull, Black Country, Coventry and Warwickshire, and Liverpool LEP areas.

As reported by Insider yesterday, the 20 successful bids are set to bring in £100m to the West Midlands' economy. Individual cash awards were not disclosed.

Up to 3,900 direct jobs and 29,800 indirect jobs are set to be created within the region after the funding has been secured.

However Jerry Blackett, chief executive of Birmingham Chamber of Commerce Group, said while additional funding is welcome, businesses must urge authorities to invest in infrastructure such as HS2, roads and rail.

He said: "The government must also look at introducing incentives to encourage employers to create jobs such as tax breaks to engender investment.

"The regional growth fund is only a very small part of the growth picture and initiatives which include smarter regulations such as speedier planning processes must be a priority.

"It is also important to ensure that regional growth funds get disbursed quickly."