Hundreds of Welsh steel jobs have been safeguarded after the UK’s second-largest producer agreed a multi-billion debt refinancing.

Spanish steel giant Celsa, which employs about 600 workers making steel at its Cardiff base and has a further 1,400 UK staff, has agreed a deal that will almost halve its debt load, easing pressure on the company’s finances.

Celsa has agreed a deal with a consortium of Spanish lenders that will cut its debt pile from €2.67bn (£2.4bn) to €1.43bn over five years.

The remaining €1.24bn will be taken off the company’s balance sheet until it matures in 2023, giving Celsa the breathing space it needs to continue.

There had been speculation this summer that the debt mountain would force Celsa into a painful round of cost cuts, job losses and disposals as lenders piled on the pressure.