Takeover saves Swansea steel plant
A Swansea steel company that went into administration last month has been taken over by a Newport-based firm.
Coilcolor has bought Falcon Steel which was based at the old Alcoa site.
Thirty five people lost their jobs when the company failed but 16 have been re-employed and Coilcolor hopes to take on more in the next few months.
Coilcolor, which makes coated steel, said due to the expansion it aimed to grow its workforce across both cities to around 90 by mid 2012.
Managing director Dean Proctor said the deal safeguard the future of the Swansea plant and Coilcolor would begin manufacture at the Westfield Industrial Park site immediately.
Mr Proctor added: "This deal gives Coilcolor a massive potential for growth.
"Greater capacity means we can offer existing and new customers a leaner, fitter and even more cost-effective service.
"Prospects are now even brighter for the existing company as well as our new team in Swansea and south Wales can boast the largest independent coil coating company in the UK."
Coilcolor makes coated steel in a variety of colours and finishes which are used in the construction industry to clad buildings.
The Swansea site will operate as a separate company to be known as Coilcolor West Ltd but will have mutual shareholders with the existing Newport company.
Mr Proctor said turnover was expected to double from £30m within 24 months.