A steel company which relocated to Crosskeys last year has reported a boost in turnover and pre-tax profits.
Capital Coated Steel relocated from its sites in Cardiff and Pontypool to a 130,000 sq ft facility at North Blackvein Industrial Estate, near Crosskeys and Wattsville.
The company, with support from Barclays Bank, spent £3.5 million acquiring and refurbishing the former premises of Tata Steel, which closed in November last year.
Ahead of the move last year, the company said the new facility would support the creation of 14 jobs and boost turnover to more than £40m in the future.
In the year ending March 2015, the company reported turnover of £32.5m – up from £28.9m in 2013/14.
Pre-tax profit also increased to £367,000 from £271,000 the previous year.
Gary Hunt, Managing Director of Capital Coated Steel, said: “As well as experiencing growing worldwide demand for our products we are investing for the future. Our significantly expanded production base at our new home in Wattsville, the subject of a £3.5m investment, will propel turnover to over £40m in its first year.
“In addition, our £1.2m Welsh Government-supported purchase of a new steel slitting production line capable of processing over 500 tonnes of coated steel a day, will enable us to better exploit market opportunities, particularly in the light gauge galvanised steel sector.
“Again we are delighted to be playing our part in the industrial revitalisation of the Gwent valleys as we continue to grow in the short to medium term.”
In a company report filed with the end of year figures, the company said: “This year has seen the commencement of the project to relocate the business, along with the business of its subsidiary and other companies under common control, to a new facility in Crosskeys.
“The balance sheet reflects the additional capital expenditure and associated debt draw-down to fund the acquisition.”
According to the same report, filed at Companies House, Capital Coated Steel sold its former premises in Cardiff for “an amount substantially in excess of its book value”.
Established in 1972 by John Hunt, Capital Coated Steel is a family run business and is the largest independent specialist distributor of pre-coated steel in Europe. The company processes over 70,000 tonnes of steel annually, used in everything from cladding to consumer electronics.