PRODUCTION at a Bradford chemicals plant will be expanded by the latest round of Government funding to regional companies.

Finnish-owned Kemira Chemicals UK Ltd is to extend its operations by building 400,000 sq m of new manufacturing and storage space at its13-acre site in Bowling Park Drive where 115 people are employed.

The major investment will lead to some new jobs Kemira starts to produce chemicals which it currently buys-in.

The new plant is expected to come on stream in the middle of 2016 as Kemira's international business continues to grow and was recently boosted by a major deal with a leading Indian company.

The minimum value of RGF grants is £1 million

Dave Goult, site manager, said: "The Government's support to advanced manufacturing industries through the Regional Growth Fund, offers significant hope for the development of a long term future of manufacturing in the UK.

"This particular grant offer will support the development of a manufacturing process at our site in Bradford that will enhance manufacturing capability within our business. The production output will be for use in improved water quality and quantity management."

"he added that the introduction of a new manufacturing process would reduce costs and make the process greener and also extend the Bradford site's life as a manufacturing base.

Deputy Prime Minister Nick Clegg today unveiled the sixth round of Regional Growth Fund money, including £20.7 million for businesses in Yorkshire.

Since 2010, a total of £280 million has been invested in 49 projects across the region, which will create or safeguard around 57,000 local jobs and attract around £1.7 billion of further investment from the private sector.

Nationally, the total allocated since 2010 is £2.85 billion.

The money is designed to help businesses expand and take on more staff.

Across England 63 new projects are included in the latest funding round which is expected to unlock £1.5 billion of additional private sector investment and create or safeguard thousands of jobs.

For every £1 the Government has invested through the Regional Growth Fund, the private sector has put in £5.50, meaning the total investment is now expected to attract £16 billion of private sector support. More than 100,000 jobs have already been created with a further 480,000 expected by the mid-2020s.

Businesses across all industrial sectors will benefit from the funding, with more than £1.1 billion being invested in manufacturing and £104 million for low carbon enterprises.

Mr Clegg said: "After decades of regional economies being neglected I set about investing directly in local businesses via the Regional Growth Fund. This investment has allowed regional businesses to be more ambitious than ever before and gone a long way in creating a stronger economy."