International structural steel firm AIC Steel Group has announced it is to open its first UK manufacturing facility on the eight-acre site of the former Rowecord plant in Newport.
AIC Steel is a leading designer, fabricator and erector of structural steel and towers, delivering world-class structural steelwork solutions to the construction industry over a wide range of market sectors.
As part of its ambitious expansion plans, the firm will use the 28,000 sq. metre Usk Way plant, formerly home to Rowecord, as its UK manufacturing hub and will open a sales office in London to target major projects.
The Rowecord plant went into administration in April 2013, owing £24 million and making 430 people redundant. AIC Steel will create 120 new jobs at the site, and has already recruited a number of employees from the Newport area into skilled roles, some of whom used to work for Rowecord. The 12,000 sq. metre of covered fabrication bays at the plant provides an annual output capacity of approximately 18,000 tons of structural steelwork.
AIC Steel Group has a turnover of $600m and has been serving the needs of the oil, gas, refining, petrochemical, power, smelting, steel, cement, desalination and other industrial and commercial projects since 1994. It also specialises in commercial projects ranging from corporate headquarters to signature office buildings.
The firm has been involved in some of the most iconic signature buildings around the world including the Kingdom Tower and Al Faisaliah Tower in Riyadh and Medina Airport in Saudi Arabia.
Commenting on its move into the UK market, CEO of AIC Steel UK Michael Treacy said:
“We are delighted to be able to announce this investment and a long-term commitment to Newport, which is helped by the fact that we aren’t answerable to shareholders and are backed by a major global parent company. We have a clear strategy for building a thriving business here in the UK.
“We have a long and proud track record of delivering high-quality work, and our global network of satisfied customers hold the key to our success. Having worked with a number of UK consultants on major projects, it was a natural progression to establish a presence here. There are a number of exciting opportunities in the UK market that we are proactively targeting.
“We chose Newport as our manufacturing hub as it has a culture that supports heavy industry and a skilled local workforce. There is a good supplier infrastructure in south Wales that we can tap into, and the port will be integral to our export activity.
“The road and rail connections to London and the availability of skilled professionals and services locally also helped in our decision making process. We believe that “Made in Wales” is a strong manufacturing brand in export markets and we have a strong, award-winning senior team in place to help drive growth.
One former Rowecord employee who has been re-employed at his old place of work is 37-year-old Fabrication Manager Mark Thorpe of Pontymister.
He said:
“I joined Rowecord as an apprentice straight from school 20 years ago, following in my father’s footsteps who worked at the plant for 25 years. I loved my job so when I was made redundant it was a real blow.
“It has been a stressful year, so I was delighted to be offered a role now that the site is under new management. It’s very exciting to see the old place come back to life and it’s great to be back!”
Economy Minister Edwina Hart has welcomed the announcement. She said:
“I am delighted to welcome a company with such an international calibre as AIC Steel to Wales. Advanced manufacturing and materials is a priority sector of the Welsh economy and overseas investment into Wales has increased by almost 200%.
“AIC Steel’s decision to open its first UK manufacturing facility in Wales was founded on the excellent existing transport and supplier infrastructures in south east Wales and the highly-skilled local workforce. This is a real endorsement that Wales is a great place to do business and we have the skills and expertise to support this significant investment.
“This is great news for Newport and a vote of confidence for the Welsh steel industry. It is particularly pleasing to hear the company has already recruited former Rowecord workers for some of the 120 new jobs to be created at the plant.”