Severfield-Rowen agrees new £50m credit facility

Structural steel group Severfield-Rowen has negotiated a new £50m credit facility designed to support growth in its UK business and investment in its expanding Indian operations.

Royal Bank of Scotland and Yorkshire Bank are providing the revolving finance deal on a five year basis, from 11 November 2011 to November 2016.

The facility replaces a previous £40m deal which was scheduled to expire in March 2013.   

Severfield-Rowen, which is erecting Anish Kapoor’s AreclorMittal Orbit, said it was on track to achieve its productivity targets for 2012.

In a trading update for the period to 16 November 2011, the market-leading firm confirmed it has a healthy UK order book of £230m, and that its debt levels remain in line with expectations.  

Despite this, the recent collapse of two competitors has reminded Severfield-Rowen of the need to plan on the basis of subdued demand and tight pricing.

JSW Severfield Structures Ltd (JSSL) has seen impressive demand in India, where it has an order book of £61m.

The firm views prospects in the region as very positive, citing a “strong presence and reputation”, and expressed confidence in its factory output levels and steel supply chain.

Kevin Campbell was recently appointed as new head of operations at JSSL’s plant, and will aim to sustain the continuous improvement in manufacturing volumes.