A contract to safeguard Hitachi Rail’s operations in Newton Aycliffe was confirmed by the Government, as part of a £500m deal,
Number 10 described the move as a "£500m deal that will uplift the industrial heartlands, and boost rail services for passengers across the Ƶ". Prime Minister Sir Keir Starmer announced that an agreement had been struck for Hitachi to build 14 new trains for FirstGroup, which runs train services including Lumo and Avanti West Coast.
Worries about the North East plant have circled for months, with fears that a looming production gap posed a risk to its workforce. Labour had promised before and during the general election campaign that it would take action to save the factory, which employs around 750 people.
The deal between FirstGroup, Hitachi and Angel Trains is for 14 new five-car class 80X Hitachi electric or bi-mode trains, with a total of 70 cars. Delivery of the new trains is expected to commence in late 2027, with FirstGroup having an option to lease up to a further 13 five-car trains should the company’s recently-submitted other open access applications be successful.
Jim Brewin, chief director of Ƶ and Ireland at Hitachi Rail, called the new contract a “positive step forward, and just recognition for the hard work and patience of our teams across the Hitachi Rail Ƶ business over recent years”.
Newcastle biotech group BSF Enterprise Plc has raised £500,000 in an oversubscribed share placing to ramp up work across its pioneering businesses.
London Stock Exchange listed BSF Enterprise plc owns Newcastle University spin-outs 3D Bio-Tissues, Kerato, Lab-Grown Leather Ltd and a Hong Kong subsidiary, all of which are making headway in a range of markets as they seek to revolutionise food, fashion, health and the pharmaceutical sectors. Now the company has announced that it has conditionally placed 20,000,000 new ordinary shares of 1p each in the company, raising £500,000 at 2.5p per share in a placing which was oversubscribed.
The firm said that the new capital, together with the company’s existing cash reserves, grants, and tax rebates, gives it an operational cash runway exceeding 12 months, and that the funds will support the execution of its strategic business and growth plans.
Che Connon, managing director of BSF Enterprise PLC, said: “We are pleased to complete this raise under difficult market conditions and with the support of current shareholders, which reflects strong investor confidence in BSF’s vision and execution capabilities."
County Durham independent vets’ practice Sore Paws is to create new jobs and a new town centre clinic after securing a £400,000 investment. Sore Paws Veterinary Clinic will soon be on the move to Cobbers Hall Shopping Centre in Newton Aycliffe, after taking up space which is three times the size of its existing surgery. The new practice, which is in the process of being fitted out, will include five consultation rooms, two operating theatres, a laboratory and X-Ray room, as well as separate areas for cats and dogs and a bereavement room with a separate entrance.
The practice will retain its existing premises and it is also planning to take on additional staff, increasing the number of vets from four to seven and the number of nurses from six to nine.
The expansion comes after Sore Paws raised £400,000 from NPIF II – Mercia Debt Finance, which is managed by Mercia Debt as part of the Northern Powerhouse Investment Fund II (NPIF II). The funding will help to cover the cost of fitting out the new facility, additional equipment and will also provide additional working capital for growth.
Founder Dr Sarah Holmes said: Dr Holmes, veterinary director, said: “We are an independent practice that aims to combine modern medicine with old-fashioned care. With veterinary practice evolving fast, we believe it is important to keep up to date. The funding will enable us to stay at the forefront and offer a modern, purpose-built surgery with all the latest equipment while retaining the ‘village vet’ feel and our trusted relationship with clients.”
MTL Projects and Mark Thompson Lifesciences have been sold to Normec Group, an Amsterdam based company specialising in testing, inspection, certification and compliance. The deal value has not been revealed. Mark Thompson Lifesciences was founded by Mark Thompson in 2014 in Bishop Auckland, and offers consultancy services to the pharmaceutical, biotech and medical device industries, with support provided by a team of consultants, trainers and engineers.
Five years ago Mr Thompson formed MTL Projects along with his two sons, Chris and Josh, who both held a background and experience in engineering. The firm is an engineering and CQV (Commissioning, Qualification and Validation) company serving pharmaceutical giants including Astra Zeneca, Pfizer and Siemens from its headquarters in Bishop Auckland, County Durham.
Mr Thompson, managing director, said: “We are very happy to announce that MTL Projects and Mark Thompson Lifesciences have been acquired by Normec Group, which has a very significant Healthcare division that we will be part of. This is an exciting time for the company and we are confident this will provide a catalyst for growth and development of our service offerings from our existing strong foundations."
Newcastle life sciences firm Newcells Biotech has raised £1.2m from existing investors Mercia Ventures, Northstar Ventures and North East Finance.
The university spin out which specialises in providing in vitro tools for testing how drugs interact with tissues says it will use the funds to build its customer base and develop partnerships with other companies with complementary products to its own.
Newcells' 3D models mimic tissues within the body and are used to test drugs under development, reducing the reliance on animal testing. With the company's tools, scientists can decide which drugs to progress to human trials - ultimately enabling them to bring drugs to the market more quickly and a lower cost.
The firm, which was founded nine years ago by Dr Mike Nicholds and professor Lyle Armstrong, currently offers models of the retina, kidney and lung and can also carry out testing for customers. Use of 3D models is said to have attracted interest after the US Food and Drug Administration (FDA) changed its rules two years ago, scrapping the requirement for new drugs to be tested on animals.
Mike Nicholds, CEO of Newcells, said: “We believe that providing better laboratory models enables a faster, more effective drug development process which in turn accelerates the delivery of new therapies to patients. Newcells’ models have proven to predict how drugs interact with tissues and organs."
