Utility meter recycler Dragon Recycling Solutions has secured £600,000 in funding to expand its Rhymney facility in south Wales.
Dragon recycles old utility meters that have been replaced by smart meters. The company said the money would allow it to expand and take on longer-term contracts with major companies. It will also now be recruiting 71 more people bringing the total workforce to 108.
Funding included £400,000 from the Welsh Government, £100,000 from the Development Bank of Wales and £100,000 from Tata Steel subsidiary UK Steel Enterprise.
Managing director Mick Young said the company would have found it very difficult to bid for larger contracts without this investment.
He said: “We required a lot more labour to satisfy the contracts, something which would have been difficult to plan for and which would have put pressure on our cash flow.
“We are lucky to have a large, high-quality, locally available workforce augmented by a good selection of support companies, ensuring the long-term security for the workforce and the local area.”
Welsh economy minister Ken Skates said: “Our economic action plan has sustainability, regional specialism and company expansion at its heart, and this is a project which really does tick all those boxes.
“There is a huge amount of support out there for ambitious businesses in Wales, and it’s particularly pleasing to see Business Wales, the Development Bank of Wales and the private sector working together to provide this excellent Welsh company with the ammunition to successfully bid for and deliver major national contracts.
“I look forward to the company’s continued success with interest.”
Development Bank of Wales senior portfolio executive Stephen Elias said: “Investing in growing businesses is a priority for the development bank, especially in the south Wales valleys where, historically, there is a strong work ethic. This is a great example of how changes in an industry can present new commercial opportunities for ambitious and tenacious businesses.
“Following our first investment in 2016, this latest funding will allow Dragon Recycling Solutions to drive the business forward, increasing its recycling capacity and workforce which is a benefit both to the community and the environment.”
UK Steel Enterprise investment executive Martin Palmer said “We are delighted to have been able to support Dragon with this funding package, enabling it to complete its expansion plans.
“One of UK Steel Enterprises’ primary aims is the creation of jobs and, with the additional contracts Dragon has secured, we will see more than 70 new jobs delivered. This will be a major boost to local communities.”