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

First published:
8 February 2017
Last updated:

This was published under the 2016 to 2021 administration of the Welsh Government

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 at East Moors Road and Tremorfa 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.

Four projects - with a total capital expenditure of £3.6m - are being supported through the Welsh Government’s Environmental Protection Scheme to reduce CO2 emissions, cut energy consumption and costs, improve efficiencies and boost performance.

Economy Secretary Ken Skates said: 

“The Welsh Government is committed to supporting the steel industry in Wales and I am pleased we are able to respond to the unprecedented pressures facing this key sector. Steel processing is an energy intensive operation and the high cost of energy is a major factor affecting the whole of the UK steel industry. This investment will help reduce energy consumption and cut costs. 

 “Our Environmental Protection Scheme provides one of the few ways of supporting large companies like Celsa with high energy usage to become more efficient. This not only delivers significant environmental benefits but also provides direct and indirect economic benefits for the Welsh economy.

“Celsa is a Welsh Government Anchor Company, a significant employer in the Cardiff area and a major contributor to the Welsh economy and this investment will ensure the business continues to be sustainable while operating under difficult market conditions. This investment will help reduce energy consumption and cut costs to help build a viable future for steel in Wales."

Luis Sanz CEO and Managing Director of CELSA Steel UK said:

"As a major energy intensive user, CELSA is always looking for ways of reducing its environmental impact, improving its energy efficiency and cutting cost. We are continually researching new technologies which help in all these areas and it is extremely helpful that the Welsh Government has a scheme which encourages the adoption of and investment in those new technologies. Even though we have already done much to cut CO2 emissions it is essential that we further reduce our consumptions and environmental impact at a time when the cost of electricity for industrial users in the UK is giving us a competitive disadvantage. 

“There has been excellent collaboration between CELSA and Welsh Government to make these investments happen and secure a more stable platform for the future growth of our business. This will benefit the company, our employees, the local and national community.”

The four carbon reduction projects have the potential to deliver 67,026 MWH energy savings and cut CO2 emissions by 12,074 tonnes annually, which is over and above the EU standards the company already complies with.