Politics

Express Reinforcements Ltd, which is based on the Milland Road Industrial Estate, is investing £150,000 in bespoke machinery and associated IT hardware and software that will increase capacity at the depot. 

The Welsh Government is supporting the project with £65,000 to ensure the investment goes ahead at the Neath facility. 

The investment is essential for the Neath plant – which was formed in 1984 – to meet the growing demand for its products.

The new equipment will not only increase production but will automate the recording of production data during the manufacturing process.

Economy Secretary Ken Skates said: 

“This expansion is important for the sustainable future of the Neath facility and supports both the steel industry in Wales – a priority for the Welsh Government – and the construction industry, one of our key economic sectors.

“Welsh Government funding support was essential to secure this project for Neath that will create and safeguard jobs while the increased production will also open up new supply chain opportunities in Wales and provide further opportunity to manufacture and supply steel products from Wales.”

Andy Lodge, Managing Director of Express: 

“This is a great example of industry and government being aligned and working for the benefit of all stakeholders. This investment will help to give a more stable platform for our Neath business and enhances the long-term sustainability of that business. The spirit of partnership has been excellent to deliver this result.”

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Economy Secretary, Ken Skates  confirmed that the Welsh Government had invested £2.8m to help create 90  new steel  jobs in Wales and safeguard a further 477. 

Ken Skates said the  investment at Code Serve in Brynmawr, Dyfed Steels in Llanelli, Express Reinforcements in Neath and Celsa Steel in Cardiff  would help to secure a sustainable future for the Welsh steel industry. 

The Economy Secretary 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.

“Together their and our investment  will create 90 new jobs and safeguard a further 477 highly skilled jobs in Cardiff and the South  Wales Valleys. 

“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.”

The Economy Secretary announce that Dyfed Steels – the largest independent steel stockholder and processor in Wales and the south west – is investing more than £4m in a new manufacturing facility. 

The expansion is  backed by £750,000 of Welsh Government support and will create 30 new jobs and safeguard more than 170  in Carmarthenshire.

The company are currently turning away a significant volume of business annually due to lack of capacity. They have identified expansion opportunities at their Llanelli site, rather than at another of  their sites in England. 

Meanwhile fifty new jobs are being created at Code Serve in Brynmawr following an expansion and relocation plan supported by funding from the Welsh Government.

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

The company  has outgrown its current facility at the former  AIC Steel site in Newport  and is  relocating to the former Tecweld building on Noble Square Industrial Estate in Brynmawr.

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

Express Reinforcements in Neath, a company that specialises in the manufacturing and supply of steel reinforcement products for the construction sector,  are investing £150,000 in bespoke machinery and IT hardware and soft ware to increase capacity. 

The move will create and safeguard 22 jobs and has been  supported by £65,000 from Welsh Government. 

Finally the Welsh Government is providing £1.6m towards major environmental improvements at Celsa Manufacturing (UK)’s two key steel production sites in Cardiff. 

The move  will safeguard up to 280 jobs and support the growth and sustainability of the business.

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 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.

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Despite the current crisis affecting the steel industry, MD David Thomas who founded the Llanelli based business 41 years ago,  is currently turning away a significant volume of business annually due to lack of capacity.

By adding further value to their products Mr Thomas has identified expansion opportunities and with £750,000 support from the Welsh Government the investment will be undertaken at its Llanelli site, as opposed to another of its sites in England.

Dyfed Steels plans to redevelop an existing property adjacent to their site in Llanelli into a new processing centre to increase capacity, capability and efficiencies and will invest nearly £3m in new equipment to support the growth of the business increasing throughput by 10,000-15,000 tonnes per year.

Economy Secretary Ken Skates said: 

“Dyfed Steels is an indigenous Welsh company of considerable importance to both the economy of Llanelli and West Wales. It is the company’s 41st year of trading and in that time it has achieved considerable success without the assistance of the public sector. It is now operating in what is an extremely difficult climate for the steel industry and I am delighted the Welsh Government is supporting its investment to safeguard their Llanelli operation. 

“This major investment by an indigenous business in a critically important industry will safeguard and create new high value jobs and help the company increase capacity and grow its market share in more profitable processed work.

 

“As a major customer for both Tata and Celsa steel their expansion will also have a beneficial knock on effect for the wider steel industry in Wales.”

MD David Thomas 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.”

The business services more than 2000 customers across a range of sectors including agriculture, construction and engineering and offers a complete range of processing services from the simplest cut bar to high volume sophisticated processing of the highest specification.

It currently employs 270 people across 10 sites across the UK, of which 173 are employed at its head office and main processing and distribution centre in Llanelli. Its Welsh operations are in Port Talbot, Newport and Newtown.

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