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A new £1m steel facility which will create 28 jobs in south Wales is now fully operational.

Caledan - a cold steel rolling mill supplying steel frame sections to the construction industry - has signed major contracts with UK firms to distribute their product, resulting in an immediate recruitment drive.

The business is being backed with £134,000 with funding from the Welsh Government.

The firm's managing director, Chris Morton, said demand was coming from all over the UK, which meant it would be looking to recruit further staff.

Mr Morton said: “This year has got off to a great start.

"We believe our product will fill a gap in the local market and allow companies in Wales to access steel frame sections quickly and easily from our base in Hengoed, Caerphilly.

But at the same time, the quality and expertise we provide means that companies with reach nationwide are approaching us too.”

The mill produces two kinds of steel frame sections, stud and track and primaframe.

Stud and track is used by the construction industry to provide support within primary structures and the Caledan mill is capable of producing up to 20,000 metres, or 12.5 miles, of stud and track in a single eight-hour shift.

At its full capacity, the mill will be able to produce 200 miles per week.

Mr Morton added: “It is the result of a great deal of hard work that the business has got off to such a strong start. We believe this is a huge boost for the construction industry in Wales.

"By making such a specialised product for the local area and further afield, we are helping the construction industry thrive in Wales and beyond. It's important that such important investment in Welsh and British businesses continues.”

Welcoming the news Economy Secretary Ken Skates said: “The Welsh Government is committed to supporting the steel industry in Wales and I am delighted the mill is now up and running and supplying the local construction industry and creating local jobs.

“Caledan is recognised as a company with high growth potential and I am pleased their plans to grow the business and create jobs are also being supported through the Business Wales Accelerated Growth Programme.”