Coilcolor has re-employed 16 workers from Falcon who lost their jobs when Falcon’s 35-strong workforce was made redundant.

Coilcolor makes coated steel cladding and hopes to expand its operations following the deal.

Managing director Dean Proctor said the deal safeguard the future of the Swansea plant and Coilcolor would begin manufacture at the Westfield Industrial Park site immediately.

Proctor added: “This deal gives Coilcolor a massive potential for growth.

“Greater capacity means we can offer existing and new customers a leaner, fitter and even more cost-effective service.

“Prospects are now even brighter for the existing company as well as our new team in Swansea and south Wales can boast the largest independent coil coating company in the UK.”

Coilcolor makes coated steel in a variety of colours and finishes which are used to clad buildings.

The Swansea site will operate as a separate company to be known as Coilcolor West Ltd but will have mutual shareholders with the existing Newport company.

Proctor said turnover was expected to double from £30m within 24 months.