Slump hits sugar site

A major development at one of Kidderminster's biggest sites is under threat from the credit crunch and a slump in trading conditions, a leading councillor warned today.

Talks have been going on for years between Wyre Forest District Council and the owners to develop the former British Sugar factory site for an out-of-town retail park and homes scheme.

But the plan has fallen foul of the council's blueprint for the site which is for light-industrial use.

Talks have continued in a bid to come up with a more suitable scheme.

Wyre Forest District Council cabinet member for regeneration Stephen Clee said today that things had "gone quiet" and he feared current market conditions were hampering progress.

He said: "I have not heard anything. With the current market conditions around the UK, I think it will be difficult to get a developer on board.

"People are not investing, and I don't think the owners will be able to move forward at the moment."

However, Steve Singleton, economic development and tourism manager for the council, said that while development at the site could take some time, he believed talks were still going on behind the scenes and it was still hoped that a planning application would be submitted soon.

Designs for phase one of the scheme were expected to be revealed in March.

Members are backing moves for the development of the former factory site which they hope will eventually create as many as 1,000 new jobs. But officials have already warned that they are in the hands of private developers and regeneration of the site could take more than 10 years to complete.

Agents at King Sturge confirmed they used to market the site but since it was sold three years ago they had not been involved.

The factory, off Stourport Road, closed in 2002. The Cill Dara Trust became the new owners of the site in 2006. They could not be contacted for comment today.