Severfield-Rowen slumps on grim outlook

27th Jan 2011 11:05

Delays to a number of major City building projects, public sector spending cuts and higher prices mean structural steel supplier Severfield-Rowen's second half prospects this year are "very poor"."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," the firm added. The first half of 2011 will be busy on the back of a £217m order book for its UK operations, including the Olympic Stadium and Shard building, but after that the problems will arise.Tender pricing will remain very tight through 2011 and reflects a deteriorating sector mix compared with previous expectations, it said. The firm has lowered its expectations for 2011, but is hopeful of some recovery in 2012.Severfield has signed a tie-up in Saudi Arabia with fabricated steel group Zamil to try to improve the workload this year.