According to media reports, Cardiff-based steel producer Celsa Steel UK is close to signing a £30 million loan deal with the UK government within days to fund its operations in South Wales.
With this deal, the steelmaker will be the first major UK-based company to take support from a new coronavirus UK government funding scheme. This funding is given to companies which have critical importance for the UK economy and have been struggling during the coronavirus pandemic.
In order to be able to get the state loan, Celsa will have to give some commitments regarding its workforce, cutting carbon emissions and imposing strict curbs on executive pay.
The company, which employs around 400 in Cardiff, produces around 1.2 million mt of steel per year.
Besides, Indian-owned steelmaker Tata Steel is also seeking a state loan worth up to £500 million from the same funding scheme to fund its operations in Port Talbot, South Wales, as previously reported by SteelOrbis.