The Spanish rebar mill Celsa gains an emergency loan of £30m from the UK government. This huge funding will safeguard rebar supplies to construction. The benefit of this loan also secures more than 1,000 jobs, including more than 800 staff at the firm’s main sites in South Wales.
Celsa in the UK produces 1.2m tonnes of product each year, and is the largest supplier of bar. So under the Government’s Project Birch scheme, the company receives the loan amount as the first taxpayer-funded bailout. This particular Birch Scheme is founded to support firms struggling during the coronavirus crisis.
However, the company receiving loans under the Birch Scheme needs to fulfill a series of legally-binding conditions. Hence, Celsa meets all such conditions including commitments to protect jobs and restraints on executive pay and bonuses. Also, further financial commitments from shareholders and existing lenders are to be met under this scheme.
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