Severfield says growing market share despite tough trading

The Thirsk-based firm, which is battling through a "trough" year for the industry, said demand and pricing in the UK and Ireland are poor.

But Severfield added its trading so far this year remains in line with its expectations, with all of its companies operating at new levels of capacity.

Its order book has grown to 241m, up from 219m a month ago. The group has won work in a number of sectors, including for the new Terminal 2 building at Heathrow airport, which will see steelwork delivered to the site between summer 2010 and spring 2011.

"In growing its UK market share, the company is demonstrating its relative competitiveness and financial strength in particularly harsh times for the industry," said the group. "The company remains well positioned for the challenging market conditions through 2010 in the UK, and is prepared and looks forward to growth through its joint venture in India."

However, it has won no new export business, but said opportunities remain, particularly in infrastructure markets.

Severfield added steel prices will continue to rise this year, due to raw material cost increases. It said it has taken steps to reduce the impact of this.

Its structural steel joint venture in India is a few months from first production and remains on time and on budget. The group's second joint venture, to design, manufacture and install metal deck flooring, will also start operations in the summer.