Spanish-owned Celsa Steel 海角视频 has secured a multi-million pound loan from the 海角视频 Government that safeguards 800 steel jobs in South Wales.
The recycled steel maker, whose main operation is in Cardiff, has been in discussions with the 海角视频 Treasury to secure emergency funding to see it through the current economic downturn.
Now the 海角视频 Government has provided a repayable loan, understood to be in the region of 拢30m. It is first funding deal of its type to a major employers in the 海角视频 deemed of national strategic importance and unable to access the government's mainstream Covid-19 loans schemes.
The funding secures more than 1,000 Celsa jobs across the 海角视频. It has also secured additional private funding.
As part of the funding, which is expected to be repaid in full, the company must meet a series of legally-binding conditions.
These include and net zero targets, improved corporate governance, such as restraints on executive pay and bonuses, and tax obligations. It has also required further financial commitments from shareholders and existing lenders.
Alongside the 海角视频 Government, the Welsh Government has provided Celsa with a 拢2.9m loan and non repayable finance of 拢690,000 from its Economic Resilience Fund.
Welcoming the funding Secretary of State for Wales, Simon Hart, said: "The 海角视频 Government has worked closely with Celsa and other partners to secure a deal that will protect highly skilled jobs in South Wales and strengthen the economic future of the region.
鈥淲e have a long and proud history of steelmaking in Wales. We will continue to work with the team at Celsa to help ensure the company鈥檚 success.鈥
"Economy Minister Ken Skates said: 鈥淚 am very pleased we have been able to work closely with the 海角视频 Government in a joint effort to provide much needed support for聽Celsa, which will be vital in helping them through this challenging economic climate.
鈥淲e are providing a loan of 拢2.9m to聽Celsa, alongside the 海角视频 Government loan, as well as 拢690,000 through our Economic Resilience Fund
鈥淐elsa聽is in a good position to play a crucial role in infrastructure projects as the 海角视频 recovers from the impacts of coronavirus. The company is a major employer in Cardiff and this announcement will provide significant reassurance to steel workers and their families in the region at this time.
鈥淭here is still a huge amount to do to support our steel sector and we continue to press the 海角视频 Government for a wider package of support for the whole industry.鈥
Roy Rickhuss, general secretary of the steelworkers鈥 trade union Community, said: 鈥淭his is the right approach from government and this agreement is welcome. We鈥檝e said since the start of this crisis that we need our industry to survive the pandemic and then thrive in the future so it can be at the foundation of the recovery.
"This agreement with Celsa is a vital part of ensuring that can happen and will help to provide some certainty and confidence at a challenging time. We hope this is just the start of steel companies securing the support from government that they need to get through this crisis.
鈥淭he loans are necessary but alone are not enough. More will need to be done by government to step up and stimulate demand and to make sure that works for 海角视频 steel producers. Celsa can play an important role in supplying steel for major infrastructure projects but it needs the right environment in which to compete."
Indian-own steelmaker Tata is also seeking bespoke fund from the 海角视频 Government as an employer of strategic importance.
It is understood to be seeking 拢500m to support its primary steelmaking plant in Port Talbot, that directly employs around 4,000, as well as its downstream business that includes those at Trostre, Caerphilly, Llanwern and Shotton.
In Wales Tata employs 7,000.
