ECONOMY Minister Ken Skates has announced Welsh Government financial support for Celsa, a major employer in Cardiff, to supplement the £30m bailout loan from the UK government, enabling the company to continue trading.
The UK government’s emergency loan is the first taxpayer-funded bailout under it’s ‘Project Birch’ scheme for firms struggling during the pandemic crisis.
Celsa Steel UK employs more than 800 of its 1,000 workers at its 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 including commitments to protect jobs, on climate change and net-zero targets, and restraints on executive pay and bonuses.
The Welsh economy minister said: “I am very pleased we have been able to work closely with the UK Government in a joint effort to provide much-needed support for Celsa, which will be vital in helping them through this challenging economic climate.
“We are providing a loan of £2.9m to Celsa, alongside the UK Government loan, as well as £690,000 through our Economic Resilience Fund
“Celsa is in a good position to play a crucial role in infrastructure projects as the UK recovers from the impacts of coronavirus. The company is a major employer in Cardiff and this announcement will provide significant reassurance to steelworkers and their families in the region at this time.
“There is still a huge amount to do to support our steel sector and we continue to press the UK Government for a wider package of support for the whole industry.”