Tata Steel plans to invest up to £800m in its Welsh facilities over the next five years.
Welsh First Minister Carwyn Jones announced the plans after meeting Tata’s vice chair Balasubramanian Muthuraman in Mumbai.
Jones said: “This substantial investment will be used to improve production, product mix, quality and product range at their plants in Wales.
“Mr Muthuraman paid tribute to the quality of the workforce available in Wales and recognised the importance of the continuing partnership with the Welsh Government in creating confidence for long-term investment decisions. He noted too that Port Talbot is one of the best sites in Europe for steelmaking.
“This is excellent news for our communities and a massive vote of confidence in Wales. A first class workforce, strong industrial relations and a mutually supportive relationship with the Welsh Government have all played a part.”
The announcement comes days after steel making returned to Teesside with the relighting of the Redcar steelworks’ blast furnace. The former Corus works was taken over by Thai firm SSI in 2010, a year after it was mothballed with the loss of 1,600 jobs.