Government loan saves 1,800 steel jobs and secures additional payments for taxpayer

A mortgage supplied by the Authorities to Cardiff-based Celsa Metal which secured 1,800 jobs has now been repaid in full and delivered a big extra fee for taxpayers, Enterprise and Commerce Secretary Kemi Badenoch has confirmed at the moment.

In 2020, the Authorities supplied an emergency £30 million mortgage to Celsa Metal to assist them proceed buying and selling in the course of the Covid pandemic, saving over 1,500 jobs and creating an additional 300 because the mortgage was supplied.

This mortgage has now been repaid in full, and the corporate has made extra funds to the Authorities triggered by their robust financial efficiency following the mortgage.

These funds are in step with the phrases which the Authorities secured to ensure taxpayer cash was protected when it supplied the emergency mortgage to Celsa Metal.

Enterprise and Commerce Secretary Kemi Badenoch stated: The swift motion of the UK Authorities in 2020 not solely secured 1,800 high-skilled jobs, it has additionally now supplied a fine addition for taxpayers.

This authorities is backing our very important metal business, and we’re doing so with a wise method that ensures the way forward for an business that’s critically essential in serving to to develop the UK financial system.

Secretary of State for Wales David TC Davies stated: Greater than a thousand highly-skilled jobs at Celsa had been protected by the fast motion of the UK Authorities and the corporate to safe a deal amid the Covid pandemic.

We’ve a protracted and proud historical past of steelmaking in Wales and we’ll proceed to work to make sure the success of this very important business.

Carles Rovira, CEO of Celsa UK, stated: We had been extraordinarily grateful for the Authorities mortgage on the peak of the pandemic in 2020 in recognition of the strategic significance of Celsa UK and our provide to main iconic development tasks.

We’re additionally extraordinarily proud to have totally glad all of the phrases of the mortgage and to have accomplished the reimbursement. We sit up for guaranteeing sustainable development within the UK via our low carbon footprint and our contribution to the round financial system.

In its mortgage to Celsa Metal in 2020, the Authorities included a sequence of legally binding situations together with commitments to guard jobs, local weather change and internet zero targets, to ensure the mortgage would profit not solely the corporate’s workforce but additionally the nation general.

The Authorities has taken in depth motion to assist the UK metal business extra extensively, together with the British Trade Supercharger, introduced in February 2023. This may deliver power prices for power intensive industries, together with metal corporations like Celsa, in step with the world’s main economies.

Industrial sectors, together with metal, have additionally been capable of bid for a number of authorities aggressive funds to assist them going inexperienced and reducing carbon emissions, and the Authorities has up to date its Metal Procurement Coverage Be aware to create a stage taking part in subject for UK metal producers.

The Authorities has additionally carried out a sturdy commerce cures framework to guard home business in addition to performing to resolve market entry constraints on metal commerce with the US and the EU.

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