- Government provided emergency Covid loan to Celsa Steel in
2020, saving 1,500 UK jobs and generating another 300.
- £30 million loan to Cardiff-based firm now fully repaid with
additional payments for taxpayer.
A loan provided by the Government to Cardiff-based Celsa Steel
which secured 1,800 jobs has now been repaid in full and
delivered a significant additional payment for taxpayers,
Business and Trade Secretary has confirmed today (26
June).
In 2020, the Government provided an emergency £30 million loan to
Celsa Steel to help them continue trading during the Covid
pandemic, saving over 1,500 jobs and creating a further 300 since
the loan was provided.
This loan has now been repaid in full, and the company has made
additional payments to the Government triggered by their strong
economic performance following the loan.
These payments are in line with the terms which the Government
secured to make sure taxpayer money was protected when it
provided the emergency loan to Celsa Steel.
Business and Trade Secretary 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, CEO 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 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.
The Government has taken extensive action to support the UK steel
industry more widely, including the British Industry
Supercharger, announced in February 2023. This will bring energy
costs for energy intensive industries, including steel companies
like Celsa, in line with the world’s major economies.
Industrial sectors, including steel, have also been able to bid
for several government competitive funds to support them going
green and cutting carbon emissions, and the Government has
updated its Steel Procurement Policy Note to create a level
playing field for UK steel producers.
The Government has also implemented a robust trade remedies
framework to protect domestic industry as well as acting to
resolve market access constraints on steel trade with the US and
the EU.
