The UK government has today confirmed that it has provided a £30m emergency loan to Celsa Steel (UK) Ltd to allow the company to continue trading and secure hundreds of jobs.
The agreement will safeguard a key supplier to the UK construction industry and secures more than 1,000 jobs, including more than 800 positions at the company’s main sites in South Wales.
As part of the loan, which is expected to be repaid in full, the company must meet a series of legally-binding conditions, which the government has negotiated to ensure the loan benefits the workforce, business and wider society. This will ensure public money is used to aid wider government policies to further benefit the UK. These conditions include commitments to protect jobs, climate change 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.
The government has brought together the firm’s management, shareholders, and other lenders to create a strong package of support for the company, its workers and UK economy.
Welsh Secretary Simon Hart said: “The UK 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. We 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’s success.”