In February 2001, Corus announced substantial job losses at the Llanwern Steel Works in Newport along with closures at Ebbw Vale, Blaenau Gwent and elsewhere in Wales.

The Corus announcement led the Welsh Assembly Government to commission the preparation of the Five Counties Regeneration Framework and separate Regeneration Programmes for Newport and Blaenau Gwent which were endorsed in summer 2002.

A key action arising from the Regeneration Framework was to ensure that Newport once again fulfils its former strategic economic role within the sub-region, the establishment of a URC to draw up regeneration proposals for the city was considered key to achieving this.

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