Saudi Arabian manufacturing and chemicals giant Sabic is to invest almost £1bn at its Teesside plant.
The company, one of the world’s largest petrochemical manufacturers, told Reuters the cash injection was part of its plans to reduce its carbon footprint by up to 60% initially.
Boris Johnson said the investment was a “huge vote of confidence” in the UK’s chemicals industry.
The prime minister said the deal would create and safeguard 1,000 jobs.
Sabic said the investment would include strengthening operations at Teesside and making its site “one of the world’s lowest carbon-emitting crackers”.
A cracker is a facility that processes and heats hydrocarbons to make building blocks for all sorts of products.
The company produces chemicals, fertilisers, plastics and metals at its plant in Wilton, near Redcar, but also has storages and logistics facilities in North Tees and Teesport.
The announcement comes as Britain is set to host the COP26 climate talks in Glasgow in November.
The summit is seen as crucial if climate change is to be brought under control. For this conference, 200 countries are being asked for their plans to cut emissions by 2030.