120 new jobs are to be created at the former Rowecord site in Newport after a firm took over the steel company site.
AIC Steel, which will make the 28,000sq metre site its UK manufacturing base, takes over the Rowecord plant which went into administration in April 2013, resulting in 430 job losses.
Rowecord, which went into administration with debts of £24m, was Wales’ biggest steel contractor and had been responsible for building the London 2012 Olympic aquatic centre roof.
A number of the Rowecord employees made redundant have already been recruited by AIC to work at the site where 18,000 tonnes of steel will be made every year.
Michael Treacy, CEO of AIC Steel’s UK division, said there was a number of factors which led to the company’s decision to set up in Newport.
“We chose Newport as our manufacturing hub as it has a culture thats supports heavy industry and a skilled local workforce,” he said.
“There is a good supplier infrastructure in south Wales that we can tap into, and the port will be integral to our export activity.”
Welsh economy minister Edwina Hart welcomed the arrival of AIC Steel in Wales.
“This is great news for Newport and a vote of confidence for the Welsh steel industry,” she said.
“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.”