Business and Trade Minister Kemi Badnoch confirmed today that the government’s loan to Cardiff-based Celsa Steel which secured 1,800 jobs has been paid in full and provided a significant additional boost to taxpayers.
In 2020 the government provided an emergency £30m loan to Celsa Steel to help them continue trading during the Covid pandemic, saving more than 1,500 jobs and creating another 300 since the loan was made.
This loan has now been paid in full, and the company has made additional payments to the government as a result of the strong economic performance following the loan.
These payments are consistent with the terms the government guaranteed to make sure taxpayer money was protected when it extended the emergency loan to Celsa Steel.
Business and Trade Secretary Kimi Badnoch said: The UK government’s swift action in 2020 not only secured 1,800 high-skilled jobs, but also provided a welcome boost for taxpayers.
This Government supports our vital steel industry, and we do this through a sensible approach that secures the future of an industry so important in helping the growth of the UK economy.
Secretary of State for Wales David TC Davies said: Over a thousand high-skilled jobs at Celsa have been protected by the swift action taken by the UK Government and the company to secure a deal amid the Covid pandemic.
We have a long and proud history in the steel industry in Wales and will continue to work to ensure the success of this vital industry.
Celsa UK CEO Carles Rovira 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 of major construction projects.
We are also extremely proud of our complete satisfaction with all loan terms and completion of repayment. We look to ensure sustainable building 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 job protection, climate change and net-zero targets, to ensure that the loan would benefit not only the company’s workforce but also the country as a whole.
The government has taken extensive action to support the UK steel industry more broadly, including the British Industry Supercharger, announced in February 2023. This will increase energy costs for energy-intensive industries, including steel companies such as Celsa, in line with the major economies of the world.
Industrial sectors including steel have also been able to bid for several competitive government funds to support them in going green and reducing carbon emissions 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 strong trade compensation framework to protect the domestic industry as well as working to resolve market access restrictions on steel trade with the United States and the European Union.