Mike German - timely news

The �3.8m package has come from the European Objective 1 scheme, the Welsh Assembly, Neath Port Talbot County Borough Council, the Welsh Development Agency and BP.

It will go towards the further development of phase one of the 80 hectare park - the biggest of its kind in Britain.

This phase of the project - which sits alongside the M4 - will involve the construction of a special business unit, aimed at generating private investment and jobs.

Deputy First Minister Mike German - who is also the minister responsible for economic development - said he was "delighted" to be able to announce the news.

This good news is particularly timely when Wales has been dealt a damning blow by Corus

Assembly Deputy First Minister Mike German

"This good news is particularly timely when Wales has been dealt a damning blow by Corus," he said.

"This is a real example of how European Objective 1 funding - by supporting important economic projects of this type - will play a key role in the future prosperity of west Wales and the Valleys."

The energy park is seen as essential in helping Neath and Port Talbot end their dependence on traditional heavy industries.

Apart from a few, small private operations, deep coal-mining has disappeared from the area and BP has closed its refinery at Llandarcy, Neath, which once employed 20,000 workers.

The oil company has been gradually phasing out its plastics factory adjacent to the energy park site.

This week's news that Corus is closing its Bryngwyn plant with a loss of 200 jobs has made the success of the energy park all the more important.

Gas will bring cut-price electricity for firms

It is hoped that expansion at the site - the largest single piece of industrial development land in the UK - could eventually bring 10,000 new jobs to the area, adding around �150m a year to the local economy.

A gas-fired power plant - being built by General Electric - will provide electricity for businesses and industries based there.

Developers say there is a shortage of electricity being generated in south Wales, and it is hoped that high energy users will be attracted by the offer of subsidised power up to 30 per cent cheaper.

Parts of the park will be used to attract offices, call centres, light industry and possibly major employers, such as car manufacturers or motor component-makers.