Cardiff-based recycled steelmaker Celsa Steel has repaid a £30m emergency loan from the UK Government provided during the pandemic.
The Catalan-owned business drew down the Covid support funding in 2020, which safeguarded 1,500 jobs and laid the platform to create a further 300 jobs.
While the terms of the Covid loan were not disclosed the UK Government said as well as being repaid in the full, the strong trading performance of Celsa has triggered a significant additional payment for the taxpayer.
Business and Trade Secretary Kemi Badenoch said: “The swift action of the UK government in 2020 not only secured 1,800 high-skilled jobs, it has also now provided a welcome boost for taxpayers. “This government is backing our vital steel industry, and we’re doing so with a sensible approach that ensures the future of an industry that is critically important in helping to grow the UK economy.”
Secretary of State for Wales David TC Davies said: More than a thousand highly-skilled jobs at Celsa were protected by the quick action of the UK Government and the company to secure a deal amid the Covid pandemic.
“We have a long and proud history of steelmaking in Wales and we will continue to work to ensure the success of this vital industry.”
Carles Rovira, chief executive of Celsa UK, said:“We were extremely grateful for the Government loan at the height of the pandemic in 2020 in recognition of the strategic importance of Celsa UK and our supply to major iconic construction projects.
“We are also extremely proud to have fully satisfied all the terms of the loan and to have completed the repayment. We look forward to ensuring sustainable construction in the UK through our low carbon footprint and our contribution to the circular economy.”
In its loan to Celsa Steel in 2020, the UK Government included a series of legally binding conditions including commitments to protect jobs, climate change and net zero targets, to make sure the loan would benefit not only the company’s workforce but also the country overall.”
Alongside the UK Government, the Welsh Government also provided Celsa with a £2.9m loan and non repayable finance of £690,000 from its Economic Resilience Fund.
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