Celsa Steel support package agreed

IOM3 Content Cafe
,
3 Jul 2020

The UK government has provided an emergency loan to Celsa Steel (UK) Ltd, Cardiff, to allow the company to continue trading. The agreement will safeguard a key supplier to the UK construction industry and secures more than 1,000 jobs.

Celsa is the largest manufacturer of steel reinforcement in the UK and one of the largest producers of other long steel products using recycled scrap metal.

As part of the loan, which is expected to be repaid in full, the company must meet legally binding conditions. These include commitments to protect jobs, climate change and net zero targets, improved corporate governance, such as restraints on executive pay and bonuses, and tax obligations. It has also required further financial commitments from shareholders and existing lenders.