Severfield-Rowen PLC
03 February 2006
3 February 2006
SEVERFIELD-ROWEN PLC
New Joint Venture Company - Steel UK
Severfield-Rowen Plc ('Severfield-Rowen'), the market leading structural steel
group, and Murray Metals Group ('MMG'), one of the UK's largest structural steel
and specialist metal suppliers, announce the creation of a new joint venture
company - Steel UK Ltd ('Steel UK').
Steel UK has been created to enable its founders, who will have a combined
structural steel requirement of approximately 300,000 metric tonnes per annum,
to conduct their structural steel purchasing activities. As a result, Steel UK
will be one of the largest buyers of steel in Europe.
The formation of Steel UK is a key strategic development for its founding
members and results from the ongoing consolidation of the steel industry. Steel
UK, which will be jointly directed by senior executives of Severfield-Rowen and
MMG, is an amalgamation of end-user and distributor and, as such, will have
major synergy potential.
The two companies will remain independent and separate in their core operating
fields of Constructional Steelwork Contracting and Steel Stockholding.
Commenting on this announcement, Peter Levine, Chairman, Severfield-Rowen, said:
'The formation of Steel UK will enable both companies to optimise our
significant volume and logistics capabilities. We would expect to see long term
benefits to Severfield-Rowen from this joint venture.'
For further information please contact:
Severfield-Rowen Peter Levine 0113 246 9993
Financial Dynamics Richard Mountain 020 7269 7291
Notes to Editors
Severfield-Rowen Plc consists of: Severfield-Reeve Structures Ltd, Watson Steel
Structures Ltd, Rowen Structures Ltd and Atlas Ward Structures Ltd.
Muray Metals Group consists of: Austin Trumanns Group, Forth Steel Ltd,
Multi-Metals, Northern Steel Stocks Ltd, Apollo Metals, Ireland Alloys Ltd and
Premier Alloys Ltd.
This information is provided by RNS
The company news service from the London Stock Exchange