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550 Jobs Secured with Investment of £2.8m into the Welsh Steel Industry

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Economy Secretary, Ken Skates has confirmed that there is a plan for a £2.8 m investment in the Welsh steel industry, securing more than 550 jobs. 90 new jobs will be created and a further 477 will be secured.

The No. 5 blast furnace at Corus' Port Talbot Works, South Wales. The furnace was rebuilt in eight months in 2002 at a cost of £75m. It produces around 1.5 million tonnes of liquid iron a year and is designed to operate continuously for a minimum of 15 years. Credit:NewsCast www.newscast.co.uk +44 (0) 20 7608 1000

Credit:NewsCast

Mr Skates said the investment at Code Serve in Brynmawr, Dyfed Steels in Llanelli, Express Reinforcements in Neath and Celsa Steel in Cardiff would contribute to securing a sustainable future for the industry.

He said:

“The future of the steel industry and steel related businesses are hugely important to manufacturing in Wales.

Indeed, the steel sector is a key priority for the Welsh Government and I am delighted to announce support for four businesses that between them are investing £8.75m in new facilities, new equipment, expansion projects and environmental improvements in Wales.

The announcement of new jobs is of course always welcome, but at a time when the sector faces extremely difficult trading conditions and stiff global competition, the safeguarding of existing jobs is more important than ever to the sustainability of the sector and the growth of our economy”.

Dyfed Steels is investing more than £4m in a new manufacturing facility. This is being supported by a £750,000 Welsh Government grant and will create 30 new jobs and will secure a further 200.

David Thomas, Managing Director, Dyfed Steels, said:

“We are very grateful for the support shown by the Welsh Government, which during a time of great concern for the Steel Sector in the UK, their support became a necessity.

Dyfed Steels Ltd needs to remain competitive in order to continue its leading presence within a challenging market. We will now continue to strive to ensure not only the future of the business but to encourage growth, safeguard jobs and create as many new staff opportunities as possible.

We aim with this additional support to increase our production capacity, attract new business opportunities and to continue as a growing, established family business in West Wales”.

50 new jobs will be created at Code Serve, Brynmawr. Welsh Government funding will support the plan for an expansion and relocation move. Two of Celsa Manufacturing’s sites in Cardiff will benefit from a £1.6m investment, facilitating environmental improvements.

The Welsh Government says it hopes plans for investment and expansion at these sites ‘will also have a beneficial knock-on effect for the wider steel industry in Wales’.