11 July, 2017
Steelmaking giant returns to profit
The Cardiff-based Celsa Steel UK group of companies, one of the largest steelmakers in Europe, has reported a return to profit in its latest financial results.
Earlier this year, the company revealed plans to invest more than £3.5m in its facilities, securing hundreds of jobs.
Celsa is the UK’s largest manufacturer of steel reinforcement products, with 100 per cent of its output produced from recycled scrap. It directly employs 600 people, together with 194 full-time contractors, at its two main sites at East Moors Road and Tremorfa in Cardiff.
According to recently-field accounts, Celsa (UK) Holdings Ltd reported a pre-tax profit of £2.3m in the year ending 31 December 2016, compared to a £16m loss in 2015.
Turnover also increased to £436.2m from £429.4m the previous year.
In their report accompanying the results the directors said the growth was “mainly due to pricing with year on year volumes staying similar”.
In February, Celsa revealed plans to invest £3.6m across its Cardiff sites as part of a project designed to reduce carbon dioxide emissions, cut energy consumption and costs, improve efficiencies and boost performance. The move is supported by £1.6m from the Welsh Government and has secured about 280 jobs.
The directors added: “The company and group continue to commit resources to the development of new products and processes where this activity is necessary to the evolution of its business and in order to keep it technologically in the forefront of the marketplace.”
Celsa (UK) Holdings wholly owns Celsa Steel (UK), Celsa Manufacturing (UK), Celsa (Wales) and Celsa Steel Service (UK).
The wider Celsa Group was established in 1967 and claims to be one of the largest steel manufacturers in Europe. Celsa Manufacturing UK was established in Cardiff in 2003 when it acquired the assets of Allied Steel & Wire.