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


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