HUNDREDS of new jobs could be created at a Newport steel plant over the next two years.

Liberty House today announced it was planning on introducing a new renewable method of production at its Lliswerry site - creating up to 600 new jobs by 2018 in the process.

The steel sector has been under strain for some time and suffered a serious blow in March when multinational giant Tata announced it would sell off its entire UK operation.

But Liberty seems to be bucking the trend as it also re-opened a plant on Tafarnaubach Industrial Estate in Tredegar today, which closed in late 2015 after owners Caparo Steel Products went into administration.

The firm has invested £3.7m into refurbishing and updating the facility, backed by £600,000 from the Welsh Government. It includes a rolling mill capable of producing 100,000 tonnes a year.

Calling the move “very good news for our economy”, Liberty’s executive chairman Sanjeev Gupta said the re-opening of the Tredegar plant would create 70 new jobs and mean UK firms would be able to use steel made in Wales.

“We are very grateful for the enthusiastic support of the Welsh Government who have shown themselves to be solidly behind the steel industry, particularly during these difficult times,” he said.

But, saying the UK’s steel industry “continues to face severe challenges”, Mr Gupta said he was under no illusions about the size of the challenge faced by the sector.

“The sharp rise in raw material prices means that margins for producers are worse than ever and we foresee challenging times ahead,” he added. 

“However the UK is a mature market with customers demanding sophisticated products and exemplary service. 

“We have the skills and capability here to serve our home market with high quality products on a competitive basis provided we can operate on a level playing field against our international competitors. Liberty is proving this time and again.” 

A new environmentally friendly method of production, dubbed GREENSTEEL, is being introduced by Liberty, which involves making steel from recycled material using renewable sources.

First minister Carwyn Jones was on hand at the re-opening of the Tredegar site and applauded Liberty for its work.

“We are doing everything in our power to support the steel industry in Wales, which is vital for the sustainable future of our manufacturing industry,” he said. 

“The reopening of the Valley’s steelworks is good news for our steel industry.

“Liberty has a proven track record within the steel sector and is one of a few companies expanding in today’s challenging climate.

“This is another strong commitment from Liberty and I welcome their plans to modernise the site and employ former staff, retaining local skills.”

Newport East AM Jessica Morden also applauded the news of the jobs in the city. 

“I spoke about Liberty’s GREENSTEEL plans to recycle scrap metal to produce steel as part of a debate on the future of the industry in Parliament last week, where we talked about the need for more government help,” she said.

“I’ve invited UK ministers to Newport to see Liberty’s operation for themselves.”

South Wales East AM Steffan Lewis also welcomed the news.

“The industry and indeed the local area has suffered of late so this is a much needed boost for both,” he said.

“Now it’s vital that the UK government give the green light to major projects that could boost demand for Welsh steel even further.

“Projects such as tidal lagoons in the Severn are the type of project they should get behind without delay.

“Wales was at the forefront of the last industrial revolution, we must renew that industrial heritage for a new era.”

Regarding the new method of production and jobs at the Lliswerry site, a Liberty spokesman said: “Since acquiring the site it’s always been the hope to bring back the steel melting operation. It’s now the firm intention to restart this.

“It’s all part of this wider plan by Liberty around recycling existing steel and powering the furnaces with renewable energy.”