A recycling plant in Rhymney is set to expand, creating 71 new jobs.
Dragon Recycling Solutions Ltd has received a £600,000 funding package from Welsh Government, the Development Bank of Wales and UK Steel Enterprise.
It is hoped the expansion will allow the company to pursue long-term contracts with major companies.
Managing Director Mick Young explained that bidding for and winning contracts would have proven difficult before the investment.
He said: “We required a lot more labour to satisfy the contracts, something which would have been difficult to plan for and which would have put pressure on our cash flow.”
He added: “We are lucky to have a large, high quality, locally available workforce augmented by a good selection of support companies ensuring the long term security for the workforce and the local area.
“This funding, for which we are very grateful, means we are now in a position to employ a further 71 people, bringing our workforce to 108.”
Economy Minister Ken Skates AM said: “Our Economic Action Plan has sustainability, regional specialism and company expansion at its heart, and this is a project which really does tick all those boxes.
“There is a huge amount of support out there for ambitious businesses in Wales, and it’s particularly pleasing to see Business Wales, the Development Bank of Wales and the private sector working together to provide this excellent Welsh company with the ammunition to successfully bid for and deliver major national contracts.”
Of the funding, £400,000 comes from Welsh Government, £100,000 comes from the Development Bank of Wales and a further £100,000 comes from the Tata Steel subsidiary UK Steel Enterprise.
Stephen Elias, Senior Portfolio Executive at the Development Bank of Wales, said: “Investing in growing businesses is a priority for the development bank, especially in the South Wales Valleys where historically there’s a strong work ethic and this is a great example of how changes in an industry can present new commercial opportunities for ambitious and tenacious businesses. Following our first investment in 2016, this latest funding will allow Dragon Recycling Solutions to drive the business forward, increasing their recycling capacity and workforce which is a benefit both to the community and the environment.”
Martin Palmer Investment Executive with UK Steel Enterprise said: “We are delighted to have been able to support Dragon with this funding package, enabling them to complete their expansion plans. One of UK Steel Enterprises’ primary aims is the creation of new jobs, and with the additional contracts Dragon has secured, we will see over 70 new jobs delivered. This will be a major boost to local communities.”
Dragon Recycling Solutions recycle 98% of all materials delivered to site, as well as 100% of the utility meters received.