A South Wales-based steel specialist has secured a £1m loan from Finance Wales to complete a high-profile project at the Queen Elizabeth Olympic Park.
Pro Steel Engineering, which specialises in professional project management and construction services, has secured the finance from the Welsh Government’s Wales Capital Growth Fund, managed by Finance Wales. The loan will provide working capital to deliver part of the £200m Queen Elizabeth Olympic Park strengthening and remodelling project.
The firm is the first to benefit from investment from the Wales Capital Growth Fund, which was created in response to demand from Welsh SMEs for short-term working capital and performance bond requirements.
With West Ham United having taken a 99-year tenancy of the Olympic Park stadium, the redevelopment - which will create nearly 100 sub-contractor jobs for Pro Steel’s team - will see the stadium transformed into a UEFA Category 4 venue, seating more than 54,000 spectators.
Finance Wales has also provided additional capital for Pro Steel, which was originally based in Langstone, to expand its operations with a move to Caldicot where it has purchased a new 3,000 sq ft steel industrial unit on Severnbridge Industrial Estate.
The move means the firm now has the capability to fabricate steel in-house without having to outsource the manufacturing process, enabling clients to benefit from a faster, more flexible service.
The Minister for Economy, Science and Transport, Edwina Hart, said: “This is a very exciting project at a key international venue and also an excellent example of how Welsh businesses like Pro Steel Engineering can take on the competition and win significant new contracts with the right financial backing.
“Finance Wales’ first investment from the new Wales Capital Growth Fund is providing the company with the working capital it needs to undertake the project. Winning larger contracts can not only boost growth prospects for businesses but can also increase their contribution to the Welsh economy.”
The company has already worked on a number of major infrastructure projects across the UK including Birmingham New Street Station and strengthening work on the A4 London Hammersmith Flyover.
Founded by Richard Selby and Justin Marriot, Pro Steel is set to recruit for a number of senior positions in the coming months as part of its ambitious growth plans.
The firm, which reported turnover figures of £1.3m in its first nine months of trading, predicts £3m of sales in its second financial year, representing growth of more than 100 per cent.
Richard Selby, co-founder of Pro Steel Engineering, said: “Our commitment to the highest quality of work, and safety levels on site, has ensured that in our first two years of trading, we are already winning sizeable, high-profile contracts across the UK.
“We are also thrilled to announce the launch of our new site in Caldicot. As we are rapidly expanding, moving to a new head office allows us to offer a greater level of flexibility to clients.
“Our goal is to grow sustainably over the next few years, building strong relationships in the construction sector and winning more high-profile contracts.”
Investment executive Oliver Jenkins structured Finance Wales’ investment in the engineering firm.
Cardiff-based BPU Accountants advised on the loan deals and Newport-based M4 Property Consultants facilitated the acquisition of the new site in Caldicot.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here