Saturday, 29 Jan 2011
Steel group Severfield Rowen said that the outlook for the UK steel industry was poor for 2011. In a trading update ahead of its full year results for 2010, it announced a new venture in its international business.
Severfield Rowen, which provides steel to the construction industry, said that "A number of commercial office projects in London and some projects in the power sector are being deferred until 2012. Overall UK demand for 2011 will be lower than expected as a result of slower than anticipated economic recovery, reducing public expenditure and significant increases in steel prices at a difficult point in the business cycle. This is leading the Company to lower its expectations for 2011, but with the prospect for some recovery starting early in 2012."
It said its 2010 results, to be announced in March, would be in line with expectations and that it has a current order book of GBP 217 million in the UK.
Severfield Rowen also announced an alliance with Saudi Arabian business Zamil Steel Industries, which it said would help both companies win big engineering projects in Saudi Arabia, the wider Middle East and North Africa, such as stadiums, high rise buildings, airports, power plants and transport infrastructure.
Mr Tom Haughey CEO of Severfield Rowen said that "Severfield Rowen has been looking to further expand its activity into the regions of the Middle East and North Africa and we believe our collaboration with Zamil is the perfect vehicle. This will give us excellent opportunities to combine our skills and work together successfully on the many prestigious projects planned in these areas."
Meanwhile, the business' Indian JV JSW Severfield Structures, which opened in November and employs 250 people, continues to grow its order book, which currently stands at GBP 15 million.(sourced:yorkpress.co.uk)
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