Seventy new jobs are be created in Blackwood with a further 170 safeguarded after a food packaging company announced an £18 million expansion.
Seda UK, which manufactures a range of packaging mainly for the food, dairy and confectionery industry, is investing £18m over the next five years at its factory at Hawtin Park.
Economy Minister Edwina Hart has welcomed the investment which is being supported with £5.4 million business finance from the Welsh Government.
The Minister met the Italian owners at the site last year to discuss the potential investment project.
The Minister said: “I am delighted to announce this latest investment is now going ahead in Wales as Seda UK was in competition with other sites in Europe for this project.
“Seda has continued to invest and expand in Wales with support from the Welsh Government since it moved here in 2004. It employed 278 at the time of this grant application at its site in Hawtin Park, making a significant contribution to the local economy. This new project will safeguard and create a significant number of jobs over the next five years.”
The investment in new plant and machinery and the potential for an additional manufacturing unit will enable the company to meet the growing demand for its range of products.
Managing Director Lorenzo Angelucci said that Seda UK had enjoyed considerable year on year sustained growth since its relocation to Wales and this additional investment will increase its capacity.
He said: “We have seen growth in all business areas and this project is particularly important to meet existing and future contracts. We had to present a strong business case to the Board to win this investment and the grant support from the Welsh Government helped secure the project for Wales.
“This project will consolidate the long term commitment the Seda Group has to the Wales operation, for the benefit of our employees, customers, suppliers and in particular the local community. Seda UK has a policy of sourcing locally wherever possible, and as a result, this latest expansion will create additional spin off benefits for the local economy.
“I would like to personally thank the Economy Minister Edwina Hart, all Welsh Authorities involved as well as our Board, in particular the Senior V/P Giulio Grandoni, our consultant and also our Head of Finance David Kersley to have made this happen.”
The Blackwood facility produces a range of paper cups, containers and plastic lids for hot and cold drinks and dairy products, as well as folding cartons. Seda UK has a full-scale graphic design department which includes a printing plates production unit and also a Research and Development centre at their Blackwood facility.
The firm is a subsidiary of the family-owned Seda International Packaging Group SpA, which is headquartered in Naples.