Businesses across South Wales are being urged to apply for grants of up to £1.5 million under a new funding scheme designed to boost economic growth and job creation as Tata Steel UK transitions to greener steel production.
The Economic Growth & Investment Fund, managed by Neath Port Talbot Council on behalf of the UK Government and Tata Steel, is now open to companies operating in Neath Port Talbot, Swansea and Bridgend. The program offers grants of between £300,001 and £1.5 million to support expansion, innovation and long-term investment.
With total funding of more than £11.7 million, the initiative is part of a wider package aimed at reshaping the regional economy as Port Talbot undergoes one of the most significant industrial changes in decades.
The fund is explicitly targeted at sectors that are expected to play a central role in the region’s future economy. These include advanced manufacturing, engineering, renewable energy, digital technologies and industries aligned with the emerging green economy.
Eligible companies can apply for support to finance capital investment projects such as new machinery, facility upgrades, technology adoption or diversification initiatives. The aim is to help companies increase their productivity, develop new sources of income and create high-quality employment opportunities.
Applicants must demonstrate clear economic impact, including measurable job creation, private sector investment and innovation in their respective industries. Complementary financing will also be mandatory to ensure that companies have a financial stake in the projects they propose.
The launch comes as South Wales continues to adapt to the structural changes brought about by Tata Steel’s decarbonisation strategy, including switching to electric arc furnace technology and reducing reliance on traditional blast furnaces.
Steve Hunt said the transition was a pivotal moment for the local economy, with the fund providing a crucial opportunity to support businesses ready to scale and adapt.
He highlighted the importance of strengthening local supply chains and building resilience, noting that the Council wants to support ambitious companies that are able to deliver long-term economic benefits across the region.
The initiative is part of a wider program led by the Port Talbot Tata Steel Transition Board, which has already committed £122 million to support workers, businesses and recovery efforts.
Jo Stevens described the fund as a clear example of government and industry working together to support communities through industrial transformation.
She said the investment would help attract new businesses, boost growth and create quality jobs. This would strengthen the government’s commitment to securing the future of steel production while supporting economic diversification.
Rajesh Nair confirmed that Tata Steel UK is contributing £5 million to the fund, underlining its intention to remain a key stakeholder in the long-term development of the region.
He said the funding would help attract new businesses, encourage innovation and support skills development as the area develops into a more sustainable industrial base.
The company’s commitment reflects a broader strategy to mitigate the economic impact of decarbonization while promoting new opportunities in clean industries and advanced manufacturing.
The fund will go through a competitive application process where proposals will be assessed on economic impact, value for money, deliverability and innovation.
Priority is expected to be given to projects that are aligned with regional growth strategies and have the potential to create lasting economic value.
For businesses in South Wales, the program represents one of the most significant funding opportunities currently available, providing both capital support and a platform to participate in the region’s industrial transformation.
As the UK accelerates its transition to a low-carbon economy, initiatives such as these are likely to play a crucial role in ensuring traditional industrial heartlands are not only protected but repositioned for future growth.
