A truck with Talgarth Bakery branding on it with two smiling men stood next to it

Source: Talgarth Bakery

Howard Hughes, Talgarth Bakery owner (left), with Rob Barber of Tata Steel subsidiary UKSE

Welsh manufacturer Talgarth Bakery has secured a £250,000 investment from Tata Steel subsidiary UKSE to help it weather rising energy costs and secure future expansion.

The Bridgend-based firm, which employs 96 people, had been struggling as a result of tripling energy costs in the last year which it said posed a ‘serious threat’ to its expansion plans.

The loan, which is a mixture of working capital and investment used to update equipment, will help it overcome these issues and create around 10 more jobs in the local area. It is the third round of funding Talgarth Bakery has received from UKSE.

“This is a very successful business and has grown steadily over the years, but the unprecedented rises in energy costs were a serious problem,” said Talgarth Bakery owner Howard Hughes. “Overall, though, the market for our products is strong and this means we can move forward with our plans to create another 10 jobs in the short to medium term and look confidently ahead.”

The bakery is a wholesale operation supplying baked and frozen savoury goods across South Wales to Bako and Castell Howell as well as around 250 independent retailers. In 2020 it bought Bromby’s – a sandwich company based in Whitland which supplies sandwiches to retailers, hospitals, schools, and other institutions. The firm also owns the Clarks Pies brand and has a shop in Maesteg.

UKSE area manager Rob Barber said the firm prides itself on the fact that it “builds strong relationships with our investment clients and work hard to understand their businesses”.

“We have been able to step in to help Talgarth deal with these considerable problems in the economy that have caused difficulties for so many businesses, particularly ones with high energy use at a time of volatile prices and uncertainty,” Barber added.

It is the latest Welsh bakery firm to receive investment in recent months. The Pudding Compartment is another example of a Welsh manufacturer looking to ramp up capacity after investment from the Development Bank of Wales – it received a £100k loan last December to improve facilities at its site in Flintshire.

Caerphilly-based paper packaging manufacturer Chevler, which produces the likes of cupcake cases, tulip muffin wraps, and printed greaseproof sheets, also secured £300,000 to replace an aging asbestos roof at its factory.