Severfield Rowen to cut production by 20%

Steelwork contractor Severfield Rowen has announced plans to cut production by 20%, which could lead to the loss of 155 jobs.

This follows a major cost review of the business, announced in August.

Severfield Rowen also said staff and management at five of its business units have agreed to salary reductions and other cost-saving measures.

The jobs at risk are 95 positions with Severfield-Reeve Structures and 60 at Atlas Ward Structures, between now and the end of 2009.

Severfield Rowen said it expected to make cost savings of about £10m a year from January 2010.

Earlier, the company said the shrinking market for constructional steel had reduced capacity across the industry but warned this was insufficient to offset a decline in prices and margins.

A recovery in prices and margins is not expected before 2011.