Dyfed Steels - the largest independent steel stockholder and processor in Wales and the south west – is investing more than £4m.
Despite the current crisis affecting the steel industry, MD David Thomas who founded the Llanelli based business 41 years ago, is currently turning away a significant volume of business annually due to lack of capacity.
By adding further value to their products Mr Thomas has identified expansion opportunities and with £750,000 support from the Welsh Government the investment will be undertaken at its Llanelli site, as opposed to another of its sites in England.
Dyfed Steels plans to redevelop an existing property adjacent to their site in Llanelli into a new processing centre to increase capacity, capability and efficiencies and will invest nearly £3m in new equipment to support the growth of the business increasing throughput by 10,000-15,000 tonnes per year.
Economy Secretary Ken Skates said:
“Dyfed Steels is an indigenous Welsh company of considerable importance to both the economy of Llanelli and West Wales. It is the company’s 41st year of trading and in that time it has achieved considerable success without the assistance of the public sector. It is now operating in what is an extremely difficult climate for the steel industry and I am delighted the Welsh Government is supporting its investment to safeguard their Llanelli operation.
“This major investment by an indigenous business in a critically important industry will safeguard and create new high value jobs and help the company increase capacity and grow its market share in more profitable processed work.
“As a major customer for both Tata and Celsa steel their expansion will also have a beneficial knock on effect for the wider steel industry in Wales.”
MD David Thomas said:
“We are very grateful for the support shown by the Welsh Government, which during a time of great concern for the Steel Sector in the UK, their support became a necessity. Dyfed Steels Ltd needs to remain competitive in order to continue its leading presence within a challenging market.
"We will now continue to strive to ensure not only the future of the business but to encourage growth, safeguard jobs and create as many new staff opportunities as possible. We aim with this additional support to increase our production capacity, attract new business opportunities and to continue as a growing, established family business in West Wales.”
The business services more than 2000 customers across a range of sectors including agriculture, construction and engineering and offers a complete range of processing services from the simplest cut bar to high volume sophisticated processing of the highest specification.
It currently employs 270 people across 10 sites across the UK, of which 173 are employed at its head office and main processing and distribution centre in Llanelli. Its Welsh operations are in Port Talbot, Newport and Newtown.