A new hi-tech purpose-designed butchery for Celtica Foods - which was supported by the Welsh Government – has already created 20 new jobs, increased production and sales.

The butchery at Cross Hands Food Park forms part of the Castell Howell complex, replacing the original smaller butchery unit at Pensarn, Carmarthen. It was supported by £1million from the Welsh Government in grant and repayable finance which has safeguarded 50 jobs and will create 32 new posts, with growth expected to continue as throughput increases.

At 37,000 square feet it is double the operational space of Pensarn resulting in the optimal layout to maximise production efficiency, improve profitability and expand its meat processing operation, including the Celtic Pride premium beef scheme.

Opening the new facility today Economy Minister Edwina Hart said: “The new butchery is already delivering impressive results – creating new jobs in the rural community, supporting local farmers, promoting the highly regarded Celtic Pride brand which represents prime Welsh meat and driving up sales.

“I am delighted the Welsh Government was able to support this key expansion which will enable Castell Howell Foods, a strategic partner of Celtica Foods, meet the increasing demand for Welsh produce from across the UK.

“Food and Drink is one of our key sectors and we aim to increase sales in Wales by 30 per cent to £7billion by the year 2020 - this expansion will help support those targets.”

Celtica Foods Managing Director Edward Morgan said: “These are exciting times for the business with the new butchery already having a major impact. It has not only increased our capacity which is very important for our local producers and customers but it has also resulted in increased efficiencies which will support our future growth plans. Support from the Welsh Government to help deliver this much needed state of the art facility is very welcome and much appreciated.”

The move has provided much needed extra storage facilities and the introduction of new meat-processing methods. The butchery processes meat for the Celtic Pride brand - a collaboration between Welsh Livestock Ltd, Castell Howell Foods and Wynnstay Group plc. and third parties.

It currently processes Celtic Pride beef from up to 85 farmers, and the new facility has seen the number of cattle processed increase from an average of 70 per week to over 110. It processes over 70 cattle carcasses per week for third parties.

The company also processes Celtic Pride premium pork and locally sourced lamb, and adds further value by producing its own range of premium burger and sausages.

Facilities include three large hanging halls - each holding up to 80 carcasses – dry ageing facilities and a number of other value adding operations.

Plans in the pipeline include a computer system providing full traceability, improved internal management and costings.

Celtica’s main customer is Castell Howell, which supplies to more than 4,000 customers as well as Weddel Swift and independent butchers.

The expansion was also supported by funding from its bankers Barclays and also HSBC. The developer, JBCH Ltd received support for the construction through the South West Wales Property Development Fund which is backed by EU funding.