A former Tata Steel site in Cross Keys which closed in November has been bought by a Pontypool steel firm which is moving 110 workers to t the area, including 14 new positions.

Continued growth and increased production requirements have resulted in Capital Coated Steel Ltd, which was previously based in Pontypool and Cardiff, investing £3.5m to acquire and refurbish the premises at North Black Vein Industrial Estate, Cross Keys.

The 130,000sq ft premises over seven acres will house an additional slitting machine imported from the USA, consolidate three existing businesses under one roof, and significantly increase capacity, creating 14 new jobs.

The move was made with help from Barlcays.

The business, set up in 1972 by father John Hunt, is a family-run business and is the largest independent specialist distributor of pre-coated steel in Europe, processing more than 70,000 tonnes of steel every year, used in everything from cladding to consumer electronics.

Gary Hunt, managing director at Capital Coated Steel Ltd, said: “Moving to the new site will allow the continued expansion of our business to meet demand.

"Our business has grown through the service and relationships we have maintained and built with our customers over the last 40 years. Producing the best quality product delivered on time, every time, enables us to compete with the big players within the steel industry.

"The unit was a former Tata Steel site and local competitor, so when they decided to close the facility down last November we immediately made enquiries to acquire the premises.

"We have made significant investment, but lots of the infrastructure and fittings for operating within the steel industry were already in place making it commercially very attractive.”

Rob Reid, Barclays relationship director, said: “By really understanding the business and the industry sector, Barclays has been able to provide a funding package to support Capital Coated Steel Ltd throughout this exciting expansion. A £3.5m investment in the new premises and plant in a very competitive market often influenced by global issues demonstrates both Barclays and Capital Coated Steel Ltd’s confidence in the continued growth and success of the business. ”

Gary Hunt said: “The new premises will allow us to relocate from our existing factories in Cardiff and Pontypool which have simply been unable to accommodate the expansion of the business, bringing more than 110 jobs to the new site.

"Every existing employee has been offered a job at the new site as well as creating 14 new roles.

"We anticipate turnover to grow to more than £40m this year and this investment clearly demonstrates our optimism for the future growth of the business. We now plan a period of consolidation while always looking to extend our offerings to the cycle storage and sectional steel building markets."