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Severfield-Rowen to cut 93 jobs

Severfield-Rowen has announced that around 93 jobs are expected to go at the newly formed Severfield-Watson Structures business.

The job cuts will affect factory workers and office staff, and will be made after a staff consultation period. They were described as part of the “continuing restructuring” of the new business.

Severfield-Rowen is the UK’s largest steel specialist. It announced 50 redundancies in November after a profit warning.

The latest round of cuts will affect the Lostock manufacturing facilities in Lancashire and the commercial offices in South Normanton, Derbyshire.

In February Severfield-Rowen announced a £20.1m profit hit, including a £10m cost overrun on the Cheesegrater skyscraper in London.

A company spokesman said: “[The] announcement is a necessary step to address underlying operational inefficiencies within the business and allow the wider Severfield-Rowen Group to compete effectively in the challenging UK construction market.

“It marks the conclusion of the previously announced reorganisation process at the Severfield-Watson business and will provide a level of operating capacity that is appropriate to prevailing market demand levels.”

Severfield-Rowen chief executive Tom Haughey resigned as the firm reported cost overruns on the Cheesegrater project and entered talks with banks in January.

Chief operating officer Peter Emerson is to retire from the firm in June after three decades at the company.

The announcement comes after steel contractor Rowecord Engineering -– which worked on the Olympic Aquatic centre roof – appointed administrators last month with a total of 424 employees facing redundancy.

 

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