Spanish steelmaker Celsa Steel has secured a bailout package from the UK government for its plant in Cardiff under Project Birch, according to media reports. The loan amount is said to be around £30mn.
The project was launched by the British Treasury as a last resort for companies at the risk of folding due to the impact of COVID-19. According to the terms of the package, should the company fail to pay the loan, the UK government will own a stake in it.
The steelmaker produces 1.2mn mt of steel annually, all by recycling scrap. The emergency bailout package is expected to save around 800 jobs in the country.
Previously, Davis Index had reported about Tata Steel seeking to get the bailout package for its Port Talbot plant. Tata Steel is said to be seeking £500mn to help them tide over the crisis.
($1= £0.80)