One hundred and twenty jobs are to be created at the former Rowecord site in Newport, with steel company AIC Steel investing in a new manufacturing facility in the area.
The Rowecord plant went into administration in April 2013, making 430 people redundant. Some of those to be employed by AIC will be those who lost their jobs last year:
We chose Newport as our manufacturing hub as it has a culture thats supports heavy industry and a skilled local workforce. There is a good supplier infrastructure in south Wales that we can tap into, and the port will be integral to our export activity"
Workers at the Tata steel plant in Port Talbot have been sent letters inviting them to stay home at half pay during March.
It's understood that the majority of the 5000 workers based there have been offered the deal.
A spokesman said the scheme was "a very flexible approach"
The invitation is entirely voluntary asking if we would like to take time off at 50% pay during March. We are looking to reduce our operating costs at a time when we face tough economic pressures and when we are about to carry out major engineering work which shows a commitment to the plant's future