A Middle East structural-steel company has bought the former Rowecord plant in Newport to use as its UK headquarters and manufacturing base. AIC Steel Group will invest £10 million (including the purchase cost) in the Welsh site — its first operation in Europe. The Saudi Arabian company, which plans to recruit 120 people, has provided structural steel for projects including Medina Airport (in Saudi Arabia) and the National Bank of Kuwait.

AIC has appointed Michael Treacy — the former chief executive of Graham Wood Structural — as its chief executive in the UK. He said: “The team we have recruited are well-known in steel. We have the factory, the facilities and a very strong balance sheet. In addition, we have the great skills that are located here. I think the market will be receptive.”

AIC plans to make steel parts for commercial buildings and technically complex projects such as refurbishing sports stadia; it will also open a sales office in London. Structural steelwork maker Rowecord went into administration in April last year with debts of £24 million.

The Welsh Assembly Government has offered AIC support on training plus R&D. Business minister Edwina Hart said: “It is good news for Newport that this facility is going to be revitalised by an excellent company. The market is starting to pick up now, and we want to support that as best we can.”