© Boardworks Ltd 2004 1 of 21 South Wales Part II Industry on the Coastal Strip of South Wales.

© Boardworks Ltd 20041 of 21

South Wales Part II

Industry on the Coastal Strip of South Wales


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Map of South Wales


Although the coastal strip of South Wales doesn’t receive as much regional assistance as ‘The Valleys’, industries locating in this area can benefit from the WDA and European Union funding.

In addition, the UK Government has given grants to multinational companies to encourage them to locate in this area.

Regional assistance


There is only one remaining steelworks in South Wales. This is located at Port Talbot (Llanwern steelworks closed in 2001 causing 1340 jobs to be lost).

The Port Talbot steelworks is called an ‘integrated’ steelworks because all stages of manufacture take place on one site. The high quality coal and iron ore have now been exhausted in South Wales. Nowadays coal and iron ore are imported from abroad where high quality raw materials can be extracted more cheaply. It is therefore more efficient for the steelworks to be located on the coast.

Traditional Industries on the coast - Integrated Steelworks

Give reasons why raw materials can be extracted more cheaply from abroad.


Port Talbot Integrated Steelworks


Inputs(Coke, limestone, iron ore)

Molten slagout

1000°C

2000°C

Molten iron out

Hot air

Steel-making

Molten STEEL

oxygen

rolling mill

steel bars steel sheets steel pipes

Limestone – removes some of the impurities from the iron ore

Oxygen reduces the carbon content in the iron


Blast furnace


Inputs Processes Outputs

Steel – industrial system

iron ore

coke

steel rods, wire, ingots, sheets

limestone

waste products blast furnace

oxygen converts pig iron to steel

Construct a table with inputs, processes and outputs for this industrial system.

labour

capital

profit

steel is put into rolling mill for shaping


BOC at Port Talbot

Integrated Steelworks at Port Talbot

Why do heavy industries locate at Port Talbot?1) cheap, flat and plentiful reclaimed land2) accessible – near the M4 and on the coast (port)


Tertiary and quaternary industries

Cardiff Bay

Bridgend Industrial Estate

Newport – Lucky Goldstar


Cardiff – the old docks

The opening of the Glamorganshire canal in 1794, to transport iron from Merthyr to Cardiff, marked the start of the importance of Cardiff as a port. In 1839 the Marquess of Bute opened the first dock. The demand for steam coal grew and by 1913, 13 million tonnes of coal were exported from Cardiff Docks. Related industries, such as steelworks, were also located in the docks. After World War I the global demand for coal declined causing the docklands to become derelict.


Cardiff Bay

Cardiff Bay Development Corporation (1987-2000) was given the task to reshape one-sixth of the Welsh capital by promoting new residential and industrial development and by uniting the city of Cardiff with its waterfront. Cardiff Bay is now a combination of old dock buildings and new developments, involving residential developments, new offices and leisure facilities. For example, there is a £30 million Atlantic Wharf Leisure Village. In December 1998 the Cardiff Barrage was completed. This has created a 200 hectare freshwater lake, which forms a waterfront for the residential and office premises. Cardiff Bay has been regenerated partly by UK government funding (£496 million), partly by ERDF (£7 million) and partly by private investment (£1.14 billion).


Ocean Park Business ParkThis business park is on the site of the old steelworks. Companies who locate here, such as Nippon Electric Glass (employing 700 people), are given grants to locate here.

Mermaid QuayThis is an area of 42 shops and restaurants overlooking the waterfront and next to the Oval Basin, a 5,000 capacity outdoor public entertainment arena.

Celtic GatewayThis multimedia park is currently occupied by ntl and BT.

Cardiff Bay developments


Bute Street Tram links Cardiff centre to the docks

Cardiff Bay developments


Cardiff Bay

NCM (a Dutch insurance company) have their European headquarters in Cardiff Bay.


Why do you think industries such as ‘Sony’ locate in Bridgend Industrial Estate?


Lucky Goldstar in Newport

LG, a South Korean multinational company, decided to locate a semi conductor plant in Newport, South Wales in 1996.


Why do you think LG located in Newport?What type of support jobs may be generated?

South Wales celebrates with Korean multinational investmentLucky Goldstar (LG) plans to build a new factory on a 250 acre site at Imperial Park in Newport. The factory, which eventually aims to employ 6,100, will produce semi conductors and television parts. It is likely that another 15,000 support jobs will be generated. LG were given a generous subsidy in order to attract their investment to South Wales. The WDA refuses to confirm rumours that the grant was as much as £200 million. This is equivalent to £20,000 per job.

July 1996


Lucky Goldstar in trouble !Lucky Goldstar has built, despite delays, a semi conductor plant in Newport. However, LG has failed to invest the full £1.7billion or create the 6,100 jobs promised in 1996. The massive South Korean multinational was affected by the financial crisis in South East Asia and in January there were rumours of Hitachi taking over the semi conductor division. These rumours failed to materialize but South Wales still waits for its full investment .

1999

Lucky Goldstar in Newport


Summary – selected industries in South Wales

Lucky Goldstar

Tourism in the Valleys –Big Pit at Blaenavon and Rhondda Heritage Park at Trehafod Ebbw Vale – Corus galvanizing steel and tin plating

tertiary and quaternary

Corus Integrated steel works

Nickel and copper plating,DVLA HQ (Driving License)

Business parksE.g. Sony and Hotpoint in Bridgend Industrial Park

© Boardworks Ltd 2004 1 of 21 South Wales Part II Industry on the Coastal Strip of South Wales.

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Transcript of © Boardworks Ltd 2004 1 of 21 South Wales Part II Industry on the Coastal Strip of South Wales.