Steel firm Liberty House has announced it's to launch a metal recycling business, under its plans for the future of steelmaking in the UK.
The company said it will set up a processing centre in Newport, where it already operates a one million tonne a year hot strip mill.
Recycling centres are also expected to be set up in other areas in the UK including Scotland and the Midlands.
The company said it has plans to develop its recycling business in the United State and Europe.
Liberty House executive chairman Sanjeev Gupta has described the launch as a "significant step" for the steel industry.
Liberty Steel has previously expressed interest in buying Tata's Port Talbot plant.