New Joint Venture Company

3 Feb 2006 07:00

Severfield-Rowen PLC 03 February 2006 3 February 2006 SEVERFIELD-ROWEN PLC New Joint Venture Company - Steel UK Severfield-Rowen Plc ('Severfield-Rowen'), the market leading structural steelgroup, and Murray Metals Group ('MMG'), one of the UK's largest structural steeland specialist metal suppliers, announce the creation of a new joint venturecompany - Steel UK Ltd ('Steel UK'). Steel UK has been created to enable its founders, who will have a combinedstructural steel requirement of approximately 300,000 metric tonnes per annum,to conduct their structural steel purchasing activities. As a result, Steel UKwill be one of the largest buyers of steel in Europe. The formation of Steel UK is a key strategic development for its foundingmembers and results from the ongoing consolidation of the steel industry. SteelUK, which will be jointly directed by senior executives of Severfield-Rowen andMMG, is an amalgamation of end-user and distributor and, as such, will havemajor synergy potential. The two companies will remain independent and separate in their core operatingfields of Constructional Steelwork Contracting and Steel Stockholding. Commenting on this announcement, Peter Levine, Chairman, Severfield-Rowen, said: "The formation of Steel UK will enable both companies to optimise oursignificant volume and logistics capabilities. We would expect to see long termbenefits to Severfield-Rowen from this joint venture." For further information please contact: Severfield-Rowen Peter Levine 0113 246 9993 Financial Dynamics Richard Mountain 020 7269 7291 Notes to Editors Severfield-Rowen Plc consists of: Severfield-Reeve Structures Ltd, Watson SteelStructures Ltd, Rowen Structures Ltd and Atlas Ward Structures Ltd. Muray Metals Group consists of: Austin Trumanns Group, Forth Steel Ltd,Multi-Metals, Northern Steel Stocks Ltd, Apollo Metals, Ireland Alloys Ltd andPremier Alloys Ltd. This information is provided by RNS The company news service from the London Stock Exchange