Business
IMS and New Indian Joint Vent
IMS and New Indian Joint Vent.
About this update from Severfield Plc
[{"type":"text","content":"\n RNS Number : 5918C Severfield-Rowen PLC 17 November 2009 \n\n17 November 2009\n\nINTERIM MANAGEMENT STATEMENT\n& NEW INDIAN JOINT VENTURE\n\nSeverfield-Rowen Plc, the market leading structural steel group, issues this Interim Management Statement covering the period to 17 November 2009.\n\nCurrent Trading\n\nIn the second half of the year all group companies are performing operationally in line with expectations, delivering projects on time, with overall group financial projections emerging slightly ahead of management's expectations. Cash balances have improved in line with predictions. Despite the considerable reduction in some UK steel construction sectors, the company's ambitions of domestic market share growth and overseas development are progressing well.\n\nCost Reductions\n\nFollowing the company's announcements on cost reductions and capacities in September, the planned capacity reductions at Atlas Ward Structures (Sherburn) and Severfield-Reeve Structures (Dalton) have been or are being implemented by the end of December 2009.\n\nAtlas Ward Structures has subsequently concluded agreements with the entire workforce on cost cutting measures and salary reductions. Further discussions are taking place with the operational workforce at Severfield-Reeve Structures to conclude cost reduction measures ahead of 2010.\n\nDemand and Orders\n\nUK demand, as anticipated, is poor in several of the key steel sectors and it remains our view that the UK structural steel market will be at its lowest trough in 2010. The industry is experiencing severe pricing pressure as a result of the imbalance between demand and supply. \n\nThe number of large UK projects will be limited in 2010, but remain important targets.\n\nThe current order book stands at a healthy £223m. Petrochem projects in the Middle East and North Africa are now being released and the company is pleased to announce its first major success in this sector with the award of a large project in Abu Dhabi. It is expected that our offices in Abu Dhabi can build on this success through 2010.\n\nIndia\n\nProgress remains on plan and within budget to commence operations via our joint venture, JSSL (JSW Severfield Structures Ltd) in July 2010.&nb...