Suppliers and workers affected by the closure of two blast furnaces at Tata Steel’s Port Talbot site will be granted £13.5 million from the government.
This will be the first payment from a £100 million fund to aid those hit by Tata’s restructuring, which is set to cost 2,800 jobs.
Welsh secretary Jo Stevens announced the funding on Thursday, commenting “this government will not wait for a crisis to overtake us before acting”.
Tata closed the first of the two blast furnaces last month, with the second set to be shut down in September.
This is as the company looks to install greener electric furnaces next year, with the previous government pledging £500 million to support the plan.
Stevens added government negotiations over job losses would continue separately, with funding set to support suppliers in finding new markets and help redundant workers.