Proposed Rationalisation

Severfield-Rowen PLC 14 March 2003 Friday 14 March 2003 SEVERFIELD-ROWEN PLC PROPOSED RATIONALISATION Severfield-Rowen Plc, the UK's largest structural steel group, announces proposals to rationalise its activities at its Rowen Structures subsidiary based in Sutton-in-Ashfield, Nottinghamshire. Whilst the proposed rationalisation at the subsidiary will result in a reduction in the work force from 150 to around 70, the continuance of the valuable engineering and technical experitise at Rowen supporting key sectors including airports, will be ensured. It is proposed that Rowen will become a specialist metalwork supplier, maintaining a customer support services function and a core manufacturing capacity. The Group's main state of the art fabrication facilities at Dalton, North Yorkshire and Bolton, Lancashire remain unaffected. It is envisaged that consultation between Rowen's management and its employees and unions will commence immediately as the company seeks to enact the proposals on a voluntary basis. The line of thinking has been prompted by a changing emphasis in market conditions and prospects, particularly in the Commercial Office sector in London, in which Rowen has traditionally been involved. The proposals regarding Rowen form a key building block in the re-engineering of the Group going forward reflecting the changes in demand of the Group's products. It has been identified that because of the constraints of the Rowen site, Rowen does not lend itself to investment in order to achieve cost-efficient and modern fabrication such as those being conducted at the Dalton and Bolton sites. Peter Levine, Chairman of Severfield-Rowen said today: 'With its strong association and relationships with many key clients, the proposed restructured Rowen Structures will remain an important member of the Group, particularly with its emphasis on key sectors such as airports.' 'The Group is dedicated to enhancing its continued market leadership through, it is proposed, ongoing investment at its two core fabrication plants at Dalton and Bolton, developing value added products and extended range of services to clients which are increasingly in demand.' 'The Group's results for the year ended 31st December 2002 are due to be announced on 8 April 2003. These results are expected to be broadly in line with market expectations, and show an improvement on the previous year, both in terms of profits and margins with excellent cash balances and no gearing. Despite challenging sector trading conditions, the Group's budget at this juncture in 2003 indicates further year on year progress with a very robust cash flow. The budget is underpinned by a most satisfactory base load of work at both Dalton and Bolton which gives the Directors considerable confidence in the future prospects of the re-engineered Group.' For further information please contact: Severfield-Rowen Peter Levine 0113 2469993 Financial Dynamics Peter Otero/ 020 7269 7291 Richard Mountain This information is provided by RNS The company news service from the London Stock Exchange LIV


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