The Government has given an emergency loan to a Cardiff-based steel producer to allow the company to continue trading.
Ministers said the agreement will secure more than 1,000 jobs, including over 800 at Celsa Steel's main sites in south Wales.
As part of the loan, which is expected to be repaid in full, the company must meet a series of legally binding conditions, including commitments to protect jobs, on climate change and net zero targets, and restraints on executive pay and bonuses.
Roy Rickhuss, general secretary of the Community union, welcomed the announcement, adding:
"We've said since the start of this crisis that we need our industry to survive the pandemic and then thrive in the future so it can be at the foundation of the recovery.
He added, "This agreement with Celsa is a vital part of ensuring that can happen and will help to provide some certainty and confidence at a challenging time. We hope this is just the start of steel companies securing the support from Government that they need to get through this crisis."
Secretary of State for Wales Simon Hart said: "The UK Government has worked closely with Celsa and other partners to secure a deal that will protect highly skilled jobs in South Wales and strengthen the economic future of the region.
"We have a long and proud history of steelmaking in Wales. We will continue to work with the team at Celsa to help ensure the company's success."
Economy Minister Ken Skates said: “We are providing a loan of £2.9m to Celsa, alongside the UK Government loan, as well as £690,000 through our Economic Resilience Fund
“Celsa is in a good position to play a crucial role in infrastructure projects as the UK recovers from the impacts of coronavirus. The company is a major employer in Cardiff and this announcement will provide significant reassurance to steel workers and their families in the region at this time.
“There is still a huge amount to do to support our steel sector and we continue to press the UK Government for a wider package of support for the whole industry.”