Politics

Celsa Manufacturing (UK) is the UK’s largest manufacturer of steel reinforcement products with 100% of its output produced from recycled scrap. Across its two main sites at East Moors Road and Tremorfa in Cardiff, it directly employs 600 people, together with 194 full time contractors while its activities in Wales support around 3000 supply chain jobs

The investment will help safeguard the future of around 280 jobs including employees, contract workers and supply chain personnel.

Four projects – with a total capital expenditure of £3.6m – are being supported through the Welsh Government’s Environmental Protection Scheme to reduce CO2 emissions, cut energy consumption and costs, improve efficiencies and boost performance.

Economy Secretary Ken Skates said: 

“The Welsh Government is committed to supporting the steel industry in Wales and I am pleased we are able to respond to the unprecedented pressures facing this key sector. Steel processing is an energy intensive operation and the high cost of energy is a major factor affecting the whole of the UK steel industry. This investment will help reduce energy consumption and cut costs. 

 “Our Environmental Protection Scheme provides one of the few ways of supporting large companies like Celsa with high energy usage to become more efficient. This not only delivers significant environmental benefits but also provides direct and indirect economic benefits for the Welsh economy.

“Celsa is a Welsh Government Anchor Company, a significant employer in the Cardiff area and a major contributor to the Welsh economy and this investment will ensure the business continues to be sustainable while operating under difficult market conditions. This investment will help reduce energy consumption and cut costs to help build a viable future for steel in Wales.”

Luis Sanz CEO and Managing Director of CELSA Steel UK said:

“As a major energy intensive user, CELSA is always looking for ways of reducing its environmental impact, improving its energy efficiency and cutting cost. We are continually researching new technologies which help in all these areas and it is extremely helpful that the Welsh Government has a scheme which encourages the adoption of and investment in those new technologies. Even though we have already done much to cut CO2 emissions it is essential that we further reduce our consumptions and environmental impact at a time when the cost of electricity for industrial users in the UK is giving us a competitive disadvantage. 

“There has been excellent collaboration between CELSA and Welsh Government to make these investments happen and secure a more stable platform for the future growth of our business. This will benefit the company, our employees, the local and national community.”

The four carbon reduction projects have the potential to deliver 67,026 MWH energy savings and cut CO2 emissions by 12,074 tonnes annually, which is over and above the EU standards the company already complies with.

Code Serve provides comprehensive and specialist fabrication and coded welding services nationwide and provides structural steelwork for major infrastructure projects around the UK.

It has outgrown its current facility – the former  AIC Steel site in Newport  where it employed 15 people and has relocated to the former Tecweld building on Noble Square Industrial Estate in Brynmawr.

The investment, which is just under £1m and includes the purchase of new equipment, is backed by £400K from the Welsh Government’s Repayable Fund for SMEs.

The company has already created 20 of the 50 jobs and taken on a number of people who were employed by AIC Steel which went into administration last year.

The news has been welcomed by Economy Secretary Ken Skates who said: 

“I am delighted support from this Fund is enabling the company to accelerate its expansion plans to meet the growing demand for its services.

“This investment is not only a boost for the steel sector, which is a top priority for the Welsh Government, but it will create a significant number of jobs, offering a wide range of career opportunities which is great news.”

Managing Director Dan Dark, who established the business in 2009, said: “This is an exciting opportunity for the business which has seen year on year growth and marks a new chapter in its development. Our new premises will play a key role in helping us achieve our medium and long term growth goals.

“We would not have been able to proceed at this time without support from the Welsh Government and we look forward to taking on new staff and creating new jobs. I am pleased that we have already taken on some former AIC Steel employees who were made redundant when the company went into administration last year.”

The new 37,000 sq ft. facility can accommodate the company’s expansion plans and comprises a detached single storey industrial unit with a two storey office section, modern extensions and a goods yard. 

The building, previously used for heavy steel fabrication, is equipped with all necessary lifting equipment to handle large scale projects with space to undertake additional processes in-house.

The investment in new equipment and larger premises will result in more efficient manufacturing process and expand its capability by offering processes such as shot blasting, testing and painting that are currently outsourced.

Code Serve operates at the higher end of the fabrication spectrum and is one of few businesses to achieve the high level accreditation of Execution class 4 for CE marking in fabrication and welding. It has provided coded welders to support the development of Hinkley C Nuclear power plant, an area of work that is anticipated to grow significantly. Other large projects include the new roof on court 1 at Wimbledon, new stand at Anfield stadium, various cross rail sites in London and the new northern hub at Ordsall chord Manchester.