Business
Concern from Bristol Airport as Cardiff eyes £200m in Welsh Government subsidies
CARDIFF AIRPORT’S bid for a substantial £205 million government subsidy over the next decade has ignited a fierce debate in the UK aviation sector. This funding, announced by Ken Skates, the Welsh Government’s Cabinet Secretary for Transport, aims to safeguard and potentially expand the 5,000 jobs supported by the airport, which the Welsh Government acquired for £52 million in 2013. The proposed investment would be targeted at attracting new airlines and routes, aiming to elevate passenger numbers to over two million annually and diversify the airport’s revenue streams in areas such as aviation training, sustainable aviation fuel, cargo, and maintenance.
However, Bristol Airport has voiced significant concerns, suggesting that such substantial state aid to Cardiff could create commercial imbalances. Bristol Airport, having handled a record 9.8 million passengers in 2023 compared to Cardiff’s 841,000, fears the subsidy could skew competitive dynamics. The airport argues that the investment might disadvantage it by altering the competitive landscape, potentially impacting its passenger numbers and revenue.
The dispute highlights the growing disparity in performance and strategy between the two airports. Cardiff Airport aims to reach its pre-pandemic annual passenger number of 1.6 million by 2026, focusing on a smaller number of routes, including long-haul flights to major economic centres. In contrast, Bristol Airport has thrived by targeting high-volume tourist traffic and low-cost carriers.
The Welsh Government has submitted its investment plans for Cardiff Airport to the Competition and Markets Authority (CMA), seeking to ensure compliance with the UK’s new public sector subsidy rules. The CMA’s Subsidy Advice Unit (SAU) has issued a non-binding evaluation report that calls for a more detailed assessment of potential competitive impacts. The report suggests that the Welsh Government’s analysis could better address the implications for Bristol Airport and other regional airports, which could also compete for similar activities in the future.
Several other UK airports, including Birmingham and Regional and City Airports, have echoed Bristol’s concerns about potential distortions to competition and investment. However, Gloucestershire Airport has reported no anticipated negative impacts on its operations.
The situation is further complicated by Bristol Airport’s expressed willingness to collaborate with Cardiff Airport in non-competitive areas to cut costs and lessen taxpayer expenses, though it seeks greater transparency in how Cardiff’s proposed subsidy will be allocated.
Responding to the news that Bristol Airport said it is “deeply concerned” over plans by the Welsh Government to provide over £200m in subsidy, Natasha Asghar MS, Welsh Conservative Shadow Transport Minister, said: “Investment in airports – as with any large-scale transport infrastructure – is crucial in order to ensure they are able to grow and thrive. This of course, includes large scale subsidies such as the £206 million proposed support package for Cardiff Airport.
“Whilst I do not dispute this positive injection of investment for Cardiff Airport, I do dispute where it is coming from. It remains my belief that the private sector is the right environment for this vital Welsh transport link to thrive, and that we would see much greater investment, growth and passenger take-up if the competitive free market was utilised.
“We all know that government funding is stretched. A move to the private sector would not only encourage efficiency, competition and attract greater investment and growth for Cardiff Airport, but it would free-up more taxpayer cash to spend in other areas of the budget that so desperately need help under current circumstances.”
In response to the CMA’s findings, Cabinet Secretary for the Economy, Rebecca Evans, has stated that the Welsh Government will take the necessary time to consider the CMA’s feedback before refining its proposed investment program. She promised to update the Senedd once a decision has been reached on how to proceed.
This ongoing saga underscores the challenges facing regional airports in balancing growth ambitions with fair competition, especially in a post-Brexit regulatory environment.
As Cardiff Airport strives to expand its capabilities and service offerings, the outcome of this dispute will have significant implications for regional economic development and the broader UK aviation industry.
Business
Harlech Foodservice steps in after Pembrokeshire Foods owners retire
A FAST-GROWING food wholesale company has stepped in to support customers after the retirement of a couple who ran a rival business for more than 30 years.
Josiah and Steffi George, who operated Pembrokeshire Foods at Hasguard Cross, near Haverfordwest, decided to retire and ensure their loyal customers would be well cared for. The couple approached Harlech Foodservice, which will now supply more than 100 businesses across Pembrokeshire and into Ceredigion.
Last year, Harlech Foodservice expanded significantly, establishing offices and a distribution centre in Carmarthen as part of a £6 million investment. This growth has already created 70 new jobs, 15 of which are in South West Wales.
This isn’t Harlech’s first move into the area; the company previously acquired Celtic Foodservices in Pembroke Dock, describing the acquisition as a “perfect fit.”
In a letter to customers, Mr. and Mrs. George explained their decision:
“To ensure our customers have a supplier who cares about you and your business, we have approached Harlech Foodservice, who recently opened a site in Carmarthen, and asked them to provide ongoing service to your business.
“Harlech have a core customer base in the tourism and hospitality sectors, aligning perfectly with Pembrokeshire Foods. They offer a large range of around 5,000 lines across frozen foods, butchery, groceries, soft drinks, snacks, hygiene products, and disposables, all at genuinely competitive prices.
“Once again, thank you for supporting us over many years, and we wish you every success in the future.”
Harlech Managing Director David Cattrall called the partnership with Pembrokeshire Foods a significant step in the company’s ongoing expansion.
Since last April, Harlech has gained 943 new independent customers and 243 new contract customers across Wales and the English border counties. The company’s clients range from individual businesses to large local authorities, including a contract to supply Shropshire Council’s Shire Services.
Harlech’s expansion into South and West Wales has also been fruitful, with the Carmarthen and Merthyr Tydfil depots winning contracts worth nearly £500,000.
Mr. Cattrall commented:
“Steffi and Josiah can be rightly proud of what they have achieved over the past three decades, building a successful company that has played a key role in the local business community.
“We are grateful for their trust in Harlech Foodservice to look after their customers and to ‘deliver’ for them in every sense of the word. We wish them all the best for their well-deserved retirement.”
Steffi George added:
“Harlech Foodservice are a fantastic company with a huge range of excellent products and first-class customer service, so we are confident that our beloved customers will be in very good hands in the future.”
Caption:
Stepping into the breach: Harlech Foodservice Managing Director David Cattrall.
Business
McAlpine appointed contractor for Port Talbot steelworks decarbonisation
SIR ROBERT MCALPINE has been named as the main works contractor by Tata Steel for its £1.25 billion investment in low-carbon ‘green’ steelmaking at Port Talbot steelworks. The project marks a major step in Tata Steel UK’s goal of decarbonising steel production.
The construction will focus on a state-of-the-art electric arc furnace (EAF)-based steel production facility capable of producing approximately three million tonnes of steel annually. The works include building a new EAF, ladle furnaces, and associated infrastructure within the existing Basic Oxygen Steelmaking (BOS) plant and surrounding areas.
This ambitious initiative, aimed at securing a sustainable future for UK steelmaking, represents a significant transformation for Port Talbot. It aligns with Tata Steel’s commitment to achieving net zero goals. Enabling works will begin in early 2025, with the main civil, structural, and building works set to start in Q3 2025, pending planning approval. The project is expected to take three years to complete.
Upskilling the workforce and supporting local communities
Beyond technology, the project emphasises investing in people. Resources will be dedicated to training and upskilling the workforce in EAF technology. The initiative is set to strengthen Port Talbot’s position as a hub for low-carbon steel production.
Sir Robert McAlpine has been collaborating with Tata Steel UK since September 2022, conducting feasibility studies for the facility. The contractor brings decades of experience in industrial construction, having worked on various parts of the Port Talbot steelworks over the past 70 years.
Craig Allen, Managing Director, Industrial, at Sir Robert McAlpine, expressed pride in contributing to this landmark transformation:
“We are proud to be part of the decarbonisation of Port Talbot steelworks, which will play a pivotal role in turning the Port Talbot site into a world-leading hub for sustainable steel production. Our robust relationship with Tata Steel UK and long-standing industrial expertise make us the ideal partner for this transformation. We look forward to working collaboratively, as part of a fully integrated project team, to deliver the project successfully.”
Commitment to regional impact and sustainability
The project also promises to positively impact the region. Sir Robert McAlpine and Tata Steel UK will collaborate with local educational institutions to support training and skills development while fostering relationships with supply chain partners to ensure project delivery.
Peter Jones, Tata Steel’s EAF Project Lead, highlighted the significance of this partnership:
“We’re delighted to confirm the appointment of Sir Robert McAlpine to support us on this once-in-a-generation investment project. Our new arc furnace will be one of the largest and most sophisticated of its kind in the world, so it is important that we work with highly skilled and experienced partners to ensure its success. We have a longstanding and trusted collaborative relationship with Sir Robert McAlpine, so are confident they are the right partner for us in the project.”
The transition to an electric arc furnace at Port Talbot steelworks is expected to result in significant job reductions. Tata Steel is cutting approximately 2,800 positions across its UK operations, with the majority of these losses occurring at the Port Talbot site.
This decision follows the closure of the plant’s two blast furnaces, which are being replaced by the new electric arc furnace.
Trade unions have expressed strong opposition to the job cuts. Unite, one of the leading unions, has planned industrial action in response to the proposed redundancies. The union has criticized Tata Steel’s decision, arguing that it threatens the livelihoods of thousands of workers and undermines the local economy.
Political figures have also weighed in on the issue. Keir Starmer previously stated his commitment to “fight for every single job and fight for the future of steel in Wales.”
Last year he called on Tata Steel to halt the planned closures and engage in discussions to explore alternatives that would protect jobs and ensure the long-term viability of steelmaking in the region.
The UK government has now agreed to provide £500 million in support to assist Tata Steel’s transition to greener production methods. Despite this financial aid, the company has indicated that the job cuts are necessary due to the reduced labor requirements of the new electric arc furnace technology.
The situation remains a point of contention among stakeholders, with ongoing discussions about balancing environmental objectives with economic and social impacts.
This monumental project signifies a new chapter for UK steelmaking and strengthens Port Talbot’s role as a global leader in sustainable steel production.
Business
Valero Pembroke Refinery welcomes new vice president and general manager
VALERO, has appointed Kyle Gentry as its new vice president and general manager of Pembroke Refinery.
Currently serving as the refinery’s operations director, Mr. Gentry will take up his new role on February 1, succeeding Mark Phair, who is retiring after a distinguished 42-year career in the petrochemical industry.
Mr. Gentry, who is married with three children, has become well-integrated into the local community since moving to Pembrokeshire. He has participated in community volunteering initiatives alongside his family and completed Ironman Wales in 2023.
Since joining Valero in 2018, Mr. Gentry has held several senior leadership positions, including his most recent role at Pembroke, which he assumed in 2022. Before his tenure at Valero, he spent over a decade with ExxonMobil. He holds a Bachelor’s degree in chemical engineering from Texas A&M University.
Expressing his enthusiasm for his new role, Mr. Gentry said:
“I am thrilled about the opportunity to lead the Valero Pembroke Refinery and look forward to continuing to work with the outstanding people here. Mark has been a great refinery manager, and we wish him the best in retirement.”
Mark Phair, who joined Valero in 1998, has held various leadership roles during his tenure, including managing the Wilmington refinery in California for 11 years and leading Pembroke for the past three years. Mr. Phair will return to the United States following his retirement.
Reflecting on his time in Pembrokeshire, Mr. Phair paid tribute to the refinery’s workforce and the local community:
“I am incredibly blessed for having the opportunity to serve as refinery manager at Valero’s Pembroke refinery. In my three years here, I have come to know and respect the great people of the refinery and Pembrokeshire.”
The refinery’s current technical director, Jen Swenton, will step into Mr. Gentry’s former role as operations director.
Valero Pembroke Refinery continues to be a significant contributor to the local economy, and the appointments mark a commitment to maintaining high standards of leadership and operations.
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