Ciner denies £100m UK Loan for Belgium plant influenced decision to axe Welsh project
Elgan Hearn, local democracy reporter
The Turkish firm Ciner says that a £100.5 million loan from the UK Government to help build their glass bottle making factory in Belgium did not influence their decision to pull out of a similar project in Wales.
Last month it was revealed that a loan has been given to Ciner by the UK Government which will help them build a glass bottle making factory at Lommel in Belgium.
The loan, by UK Export Finance, is part of a finance package worth €504 million (Euros) to allow them to do that.
UK Export Finance are the UK Government’s export credit agency.
Beneficiaries of this loan include Sheffield-based Tecoglas who have a £100 million contract to build the furnaces at the factory in Belgium.
In July, Ciner announced that they were pulling out of developing the factory on the Rassau Industrial Estate in Ebbw Vale.
The hopes that 650 jobs would be created by the factory in Blaenau Gwent faded with the announcement.
At a meeting of Blaenau Gwent County Borough Council’s Economic Development and Environmental Management scrutiny committee earlier this month the UK Government £100 million loan was brought up for discussion.
Cllr Gareth Alban Davies (Opposition Independent – Rassau and Garnlydan) had asked if the loan had influenced Ciner’s decision not to build the factory on the Rassau Industrial Estate.
Following the meeting the Local Democracy Reporting Service contacted both Ciner and the UK Finance Export to get an answer to Cllr Davies question.
Ciner has explained that factory projects were separate.
They have also pointed out that a statement made on the €504 million finance package were made in August, a month after the decision to pull the plug in Ebbw Vale was made public.
New projects
A Ciner spokesperson said: “We remain committed to long-term investment in the UK and are actively planning new projects in South Wales, including in Ebbw Vale, where we are in discussions with the Welsh Government to buy the land and look forward to updating you on this progress shortly.
“We are proud of our contribution to the UK and Welsh economy, having invested more than £20 million to date through sponsorship and support for local communities, social enterprise initiatives, research and development grants with leading UK universities, and strategic partnerships with British industry.”
A UK Export Finance spokesman said: “This specific loan guarantee was provided to finance a large export contract for a British company.
“We expect around 16 UK firms to benefit on the back of this contract, creating new jobs for British workers.”
Ciner were given planning permission by councillors to build the factory back in June 2022.
In February 2024, planning officers approved amendments to the planning permission for the factory which would have made it smaller than the original scheme.
During the last couple of years concerns were raised regularly by councillors over the lack of progress being seen with the scheme.
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Didn’t the UK government realise that helping the building of a similar plant in Belgium would jeopardize the building of the plant in Ebbw Vale? It makes me wonder how many political fingers are in this 100million loan in Sheffield? If that sounds bitter – so it should. Ebbw Vale is crying out for investment, times are hard enough for the poor living in this area, as it is, without it’s own UK government sabotaging planned investment too. It’s gives us another reason why being part of the UK is just not working for Cymru.
Would Belgium still have happened without this support?
Yes it would gave
Feel free to show your working.
‘Loan guarantee’. Not a loan. Big difference.
This loan guarantee helps a British supplier out in the case that Ciner go into liquidation.
Not really a big difference. Either loan or guarantee Ciner wins. Cider unlikely to go into liquidation. But loan or guarantee, Wales loses. I have no idea why you are so supportive of Wales losing.
So it’s free government insurance and no actual money changes hands unless something goes wrong?
Why was this support given when it was obvious that Wales would lose out?
This is more about the impact of Brexit than loans. Their preferred place was probably Belgium anyway.
Export is not how we should be doing business in the main. I know it’s how the economy has worked for years but we should try to import and export as little as possible while producing and using more of our own stuff.
Rightly or wrongly, economic success is measured by GDP and net exports is a big contributor to that. The global trade mistake is having one country like China make everything for everyone. We should be regionally self-sufficient instead, which is what single market membership encouraged. There’s no future where we make everything we need and want here, unless we severely restrict choice in what we consume. But even then we simply don’t have the raw materials for total self-sufficiency.