The Ebbw Vale Steel, Iron & Coal Company
The Ebbw Vale Steel, Iron & Coal Company was based in south Wales. Founded in 1790, it was the largest tinplate producer in the country, until its closure in 2002.
In the Edwardian period it employed 34,000 men, and by the mid-nineteenth century it was at the forefront of technological development, especially in the conversion of iron to steel. It gained further British technological firsts after a complete rebuild in 1936-8 and went on to outlast all the other Heads of the Valleys iron and steel plants.
Beginnings
Ebbw Vale Ironworks was part of a chain of works along the northern rim of the south Wales coalfield where the raw materials for making iron - iron ore, coal and limestone - occurred together.
It was established in 1790 by a partnership led by Jeremiah Homfray, owner of the Penydarren Ironworks at Merthyr Tydfil. In 1796 he sold the works to the Harford family who ran it for the next half a century, building three more blast furnaces, puddling furnaces to produce wrought iron and rolling mills to make rails. The Harfords also bought the three blast furnaces at Sirhowy in 1818, to increase their supplies of pig iron for the furnaces and mills.
Expansion
The Harfords went bankrupt in 1842 when their overseas investments collapsed. Their works were kept going by trustees and in 1844 Abraham Derby IV, the Coalbrookdale ironmaster, came out of semi-retirement to form the Ebbw Vale Company.
The company rapidly expanded, buying the neighbouring Victoria Ironworks in 1848, Abersychan Ironworks in 1852, Pentwyn Ironworks in 1858 and Pontypool Ironworks in 1872. When the local iron ores became exhausted the company bought iron mines in Somerset, Gloucestershire and Spain during the 1850s.
In 1854-5 George Parry, the works chemist, experimented with steel making but it was not until 1868, when the company installed a Bessemer plant, that regular steel production began.
The cost of expansion
The company was reformed as the Ebbw Vale Steel, Iron & Coal Company Limited in 1868. The cost of continued expansion in the boom of the early 1870s crippled the company in the depression that came later in the decade. Iron trade declined as steel superseded iron - fortunately the Ebbw Vale Company had been an early innovator in steel production.
From 1873 the company was controlled by Manchester financiers, who did not seem to understand the iron and steel trade. The works declined; Pentwyn closed in 1868, Sirhowy and Abersychan closed in 1882-3, Pontypool in 1890 and by 1892 the concern was almost bankrupt, with the plant described as obsolete and the machinery in disrepair.
Changing direction — the insatiable demand for Welsh Coal
From the 1870s onwards the Ebbw Vale Steel, Iron & Coal Company's prosperity lay in coal rather than iron and steel. In 1873 it was already the largest coal producer in south Wales, but the bulk of its coal was being used in the coke ovens and the steam engines of the ironworks.
In the 1870s and 1880s the company switched direction to take advantage of the spectacular growth in demand for Welsh steam coal to drive the world's ships, trains and steam engines.
As the older collieries in the Ebbw Vale area were becoming exhausted it sank two new collieries - Waunlwyd (1874-7) and Marine Colliery at Cwm (1889-91). Ebbw Vale coal became a familiar sight all over the world.
The increasingly insatiable demand for Welsh steam coal during the first two decades of the twentieth century enabled the company to rapidly expand and modernise its collieries. Some of the older collieries were closed and output was doubled at Waunlwyd and Marine.
In twenty years the company doubled its output to 2 million tons. More coal meant more miners and the company's workforce rose to nearly 6,000, and profits rose dramatically too.