A new £1 million steel facility which is set to create 28 jobs is open for business.
Caledan – a cold steel rolling mill supplying steel frame sections to the construction industry – has been backed by £134,000 of Welsh Government funding.
Based on Penallta Industrial Estate, near Ystrad Mynach, the firm has signed major contracts with UK firms to distribute their product, resulting in an immediate recruitment drive.
Managing Director Chris Morton said demand was coming from across the UK.
He said: “This year has got off to a great start.
“We believe our product will fill a gap in the local market and allow companies in Wales to access steel frame sections quickly and easily from our base in Hengoed, Caerphilly.
“But at the same time, the quality and expertise we provide means that companies with reach nationwide are approaching us too.”
The mill produces two kinds of steel frame sections, Stud and Track and Primaframe.
Stud and track is used by the construction industry to provide support within primary structures and the Caledan mill is capable of producing up to 20,000 metres, or 12.5 miles, of stud and track in a single eight-hour shift.
At its full capacity, the mill will be able to produce 200 miles per week.
Caledan is also a specialist in the production of Primaframe – complex steel frames which are essentially the load bearing structural frames for a building. While other mills offer the stud and track product, most do not offer the Primaframe variant meaning Caledan is able to provide a more universal service. The advanced machinery and software it has invested in means it is capable of producing 1,000 square metres of frames per day.
Mr Morton added: “It is the result of a great deal of hard work that the business has got off to such a strong start. We believe this is a huge boost for the construction industry in Wales. By making such a specialised product for the local area and further afield, we are helping the construction industry thrive in Wales and beyond. It’s important that such important investment in Welsh and British businesses continues.”
The Welsh Government’s Economy Secretary, Ken Skates AM, said: “The Welsh Government is committed to supporting the steel industry in Wales and I am delighted the mill is now up and running and supplying the local construction industry and creating local jobs.
“Caledan is recognised as a company with high growth potential and I am pleased their plans to grow the business and create jobs are also being supported through the Business Wales Accelerated Growth Programme.”
Caledan customer SIG Insulation has also welcomed the announcement. Craig Newman National Sales Director for Insulation and Drylining comments: “SIG began trading 60 years ago from humble beginnings of supplying insulation, and with our suppliers and customers support we are now the leading supplier of specialist construction products in the UK.
“Supporting local businesses is key to the future of our industry, we are already seeing the benefits of this trading agreement and I am excited as to what the future holds and wish Caledan every success.”