Investment in new cold steel rolling mill goes ahead with Welsh Government support

The construction of a new cold steel rolling mill is underway in Caerphilly in an investment supported by the Welsh Government that will use locally produced steel and create 28 new jobs.

The £1M investment by Caledan Ltd, who are based on Penallta Industrial Estate, Hengoed, is supported by £134,000 finance from the Welsh Government and ensured the investment went ahead in Wales.

The new mill will use locally sourced steel, predominantly from Tata Steel in Llanwern, to process and supply both bespoke, and ready made, sections for steel framed systems used in the construction industry.

Chris Morton, Managing Director of Caledan, said:

“The new steel rolling mill means that we will be able to provide a ‘made in Wales’ building solution from design, manufacture and fabrication through to delivery and installation through our approved network of installers.”

Economy and Infrastructure Cabinet Secretary Ken Skates said:

“The Welsh Government is committed to supporting the steel industry in Wales and I am pleased this project aims to do just that.

“The investment not only secures a new venture but will create new jobs and enhance opportunities within the local supply chain. It also supports the construction sector priorities for innovation in off-site manufacturing and non traditional building methods.”

Chris Morton added:

“Support from the Welsh Government was vital to ensure the project went ahead in Wales as an alternative project under consideration was a joint venture investment in the Midlands.

“We can now take advantage of a gap in the market to purchase and produce the cold steel strip locally for our own uses and to supply the wider construction industry.

“It will result in increased efficiencies and savings for our business and, as we will also be supplying the local market, it will create additional savings on logistics and cut the carbon footprint.”

Off site manufacture and a move away from traditional ‘wet trades’ has seen an increase in the specification and use of modular framed structures, including those made from timber and steel framed systems.

Steel framed buildings are a cost effective method of providing a building envelope and this construction method has been used in a number of high profile projects in Wales and the UK, including ATRiuM: Cardiff School of Creative and Cultural Industries, WJEC’s new headquarters on Western Avenue Cardiff and Ferrara Tower on Swansea’s Meridian Quay.

Construction is one of the Welsh Government’s key economic priority sectors and Caledan have benefited from the Construction Futures Wales business support programme.

Supported by the Welsh Government, the programme is geared to develop the long term sustainable future of the construction sector in Wales and to support its growth by helping businesses improve their performance and become as competitive as possible.

For more information visit caledan.co.uk (external link).