Two companies have expressed an interest in Newport’s Orb Electrical Steels plant.
One of the companies, Liberty Steel, already has a presence in the city.
This week Tata Steel announced it was to ‘mothball’ rather than close the plant.
The Indian steel giant had announced in September it was shutting the works, which makes specialist electrical steels, as it had been unable to find a buyer and the plant needed £50m of investment to make it competitive.
The closure would result in the loss of around 400 jobs.
Russell George AM said: “The interest from two companies – Liberty Steel, which already has an operation in Newport, and Big River Steel from the US – is, of course, welcome, and especially at this time of year.”
The site, which makes electrical steel used in power transmission and the car industry, is based in Pill, Newport, where there has been steelmaking since 1898.
Mr George continued: “I was equally pleased to hear yesterday that Tata Steel, which owns Orb, announced that the plant is to be ‘mothballed’ rather than closed. We must remember that it is a reprieve, not a guarantee of the plant remaining in operation.
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“For this to happen, then it requires further and future investment to maintain its viability. Tata Steel has said some £50 million would be required to upgrade the plant to fully support the electric car market for domestic and overseas consumption.
“I have also been encouraged by a statement from Tata Steel that it has been working hard to identify alternative jobs at Tata Steel for employees at the Orb business, and that remains committed to finding jobs for all those wanting to stay with the company.”
When announcing the closure of the plant in September Henrik Adam, CEO of Tata Steel’s European operations, had said the closure was necessary as it would enable the company to focus resources, including investment, on its core business and markets, helping it build a long-term sustainable future in Europe.
Mr George added: “With Aston Martin in the Vale, Projekt Grenadier from Ineos in Bridgend, and eventually, TVR in Ebbw Vale, the importance of keeping or making all areas in South Wales and beyond part of the car-manufacturing supply chain is vital.”