TWENTY-EIGHT jobs will be created as a new cold steel rolling mill is to be built near Caerphilly, as part of a £1million investment.

Using locally sourced steel, mainly from the Tata Steel made at Llanwern, Hengoed firm Caledan Ltd will produce bespoke and ready-made sections for steel frame systems for the construction industry.

Based on the Penallta Industrial Estate, the company is supported by Welsh Government with an investment of £134,000.

“The new steel rolling mill means that we will be able to provide a ‘made in Wales’ building solution from design, manufacture and fabrication through to delivery and installation through our approved network of installers,” said managing director Chris Morton.

“Support from the Welsh Government was vital to ensure the project went ahead in Wales as an alternative project under consideration was a joint venture investment in the Midlands.”

Steel framed buildings is a method of providing a building envelope and this construction method has been used in a number of high profile projects in Wales and the UK.

Economy and infrastructure cabinet secretary Ken Skates said: “The Welsh Government is committed to supporting the steel industry in Wales and I am pleased this project aims to do just that.

“The investment not only secures a new venture but will create new jobs and enhance opportunities within the local supply chain. It also supports the construction sector priorities for innovation in off-site manufacturing and non-traditional building methods.”

Construction is one of the Welsh Government’s key economic priority sectors and the Hengoed firm have benefited from the Construction Futures Wales business support programme.

“We can now take advantage of a gap in the market to purchase and produce the cold steel strip locally for our own uses and to supply the wider construction industry,” added Celadan’s managing director.

“It will result in increased efficiencies and savings for our business and, as we will also be supplying the local market, it will create additional savings on logistics and cut the carbon footprint.”