The firm today signed an agreement with JSW Steel subsidiary, JSW Building Systems, to jointly form JSW Severfield Structures.
JSW Steel is part of the OP Jindal Group, the third largest steel firm in India.
The total investment cost of the 50/50 joint venture is around £30 million to be funded by two thirds debt and the remainder by equity. Initial revenues from the new businesses are expected tin 2011.
Severfield-Rowen said trading has continued to be in line with management expectations, with good levels of production.
Despite work in the ‘traditional sectors some of which continue to slow’ orders have been supported by success of work in the power stations, health and education sectors.
The firm said: “The UK economic conditions are expected to be difficult in 2009, particularly for some sectors of the construction market. The company remains in good shape with a significant order book, a competitive cost base and increasing export capability.
“In support of the company's export ambitions, a new branch office will be opened in Abu Dhabi early in 2009. The company is confident it will produce good relative results beyond 2008.”