UKSE investment helps create 71 jobs in Welsh Valleys.
Tata Steel subsidiary UK Steel Enterprise has supported a £600,000 investment creating 71 new jobs and securing 37 in one of Wales’ most disadvantaged communities.
UK Steel Enterprise provided a £100,000 loan to Dragon Recycling Solutions of Rhymney, and Welsh Government and Development Bank of Wales provided the balance with a grant and loan respectively.
The funding enables the company to fulfil long-term contracts with major companies to recycle old-style utility meters following the roll-out of new smart meters across the UK.
Managing Director Mick Young explains that winning the contracts could have been a double-edged sword. “We required a lot more labour to satisfy the contracts and this would have put pressure on the company’s cash flow”.
“This funding, for which we are very grateful, means we now in a position to employ a further 71 people.”
The extra 71 members of staff will join the existing 37, bringing the workforce to 108 full time jobs at the Valleys recycling centre.
“We have identified 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,” commented Mr Young.
Dragon has proved to be extremely efficient at recycling the old meters and turning them into re-useable materials.
“Dragon Recycling Solutions Ltd recycle 98% of all materials delivered to site and 100% of the utility meters received under the smart meter rollout recovering valuable commodities such as plastic, steel, brass and circuit boards,” added Mr Young.
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 Enterprise’s 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 the local communities, which have suffered from economic deprivation for many years.”
The Welsh Government’s Economy Minister Ken Skates 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.
“I look forward to the company’s continued success with interest.”
Photo Caption: New jobs: (from left) Stephen Elias Development Bank of Wales, Wayne Hoskins and Mick Young Dragon Recycling Solutions, Martin Palmer Tata Steel subsidiary UK Steel Enterprise and Kris Hicks Business Wales.