Norwegian aluminium company Sapa has announced plans to invest £9.6m in an automotive plant in Caerphilly, Wales in order to produce a new generation of eco-friendly London black cabs.
The new plant will create more than 130 jobs in Bedwas, South Wales on a site which was mothballed by Sapa in 2014 due to tough market conditions and over capacity, according to the Guardian. The plant was previously used for aluminium extrusion but will be refurbished for the change of purpose.
The move comes as manufacturing confidence is faltering due to uncertainty over Brexit. Financial backing of £550,000 from the Welsh government was given as the reason why Bedwas was chosen over another of Sapa’s European sites.
The new factory will be producing cabs for the London Electric Vehicle Company, which is developing a zero-emissions taxi ahead of moves to ban diesel and petrol cars and vans in the UK from 2040. London is already subject to a congestion charge and Low-Emission Zone.
Production will commence at the plant from late 2017, using materials sourced from Spain. Output will increase steadily over the next five years.
Welsh First Minister Carwyn Jones said: “The opening will create a range of new job opportunities and give a new lease of life to the area.”