Deal expected on steel plant takeover

Spanish steel firm Celsa wants ASW's Castle site

The deal which could save hundreds of jobs at a south Wales steel plant is expected to be signed on Thursday.

Former workers at the Allied Steel and Wire Plant in Cardiff are waiting to learn if the proposed takeover by the Spanish firm Celsa is to go ahead.

ASW specialised in wire products

The 800-strong workforce lost their jobs in July last year when ASW announced it was closing its Cardiff sites.

The firm's receivers, KPMG, announced in November 2002, that it was in talks for the Barcelona-based company to take on the plant from this month.

Up to 600 former ASW employees stand to return to their old jobs if the contract is signed on Thursday as predicted.

But it is unlikely to help any of the former workers with the other aspect of ASW's closure - their loss of pension fund cash.

After news last July of the steel plant's closure, it emerged staff would receive only a small percentage of their company final salary pension scheme due to a shortfall in the fund.

Negotiations

ASW has been administered by KPMG since it announced it was to close its adjoining Tremorfa and Castle works in Cardiff Bay.

KPMG was involved in weeks of secret negotiations with Celsa about its desire to take over the plant.

The Spanish firm said the Castle site was "critical" to its bid and called for help from Cardiff council, the Environment Agency and other interested parties to secure a deal.

On Wednesday, a senior Cardiff councillor welcomed reports that Celsa had finally reached an agreement on the issue.

Cabinet Member Marion Drake said: "The closure of the ASW plant was a serious and bitter blow to the Cardiff economy and the ex-ASW staff.

"I am pleased that the significant efforts made by a wide range of Welsh organisations have helped secure the sale of the company as a going concern."