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UK

Britain provides emergency loan to Celsa Steel

LONDON (Reuters) - Britain agreed an emergency loan to the British arm of Celsa Steel on Thursday, designed to keep the company trading and safeguard more than 1,000 jobs, mostly at a site in south Wales.

The size of the loan was not disclosed. The government said it expected to be repaid in full and that the deal depended on commitments to protect jobs and meet environmental targets.

Restraints on executive pay were also written into the agreement, and the deal involved additional funding from shareholders and existing lenders.

Celsa’s British operation produces around 1.2 million tonnes of steel annually from recycled scrap metal, the company’s website said. It says it is the largest producer of steel reinforcement in Britain, and one of the largest in other long products.

A government news release described the Spanish-headquartered company as a key supplier to the British construction industry.

Reporting by William James; editing by Stephen Addison

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