TEESSIDE SCAFFOLDER
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SSI profits soar ahead of Tees takeover
by Jes Davison, Evening Gazette
Feb 1 2011
2ShareSAHAVIRIYA Steel Industries (SSI) has almost doubled profits ahead of its anticipated takeover of the Tata steelmaking plant in Redcar.
A strong rally in the global steel market saw the Thai firm generate net profits of 2.57bn baht (£51.87m) in the year to December 31, comfortably outstripping the 1.33bn baht (£26.91m) recorded in the previous year.
Revenues rose 43.7% to 48.3bn baht (£0.97bn) while assets of 42.5bn baht (£0.86bn) were almost twice the value of liabilities (22.6bn baht or £0.45bn).
Although profits were below analysts’ forecast of 2.82bn baht (£56.8m), the results mark a year of growth for SSI on the back of a resurgent steel market.
Steel production increased by almost a quarter in the UK last year following a recovery in the world economy, according to a recent report by UK Steel.
The data showed output rose from 7.5 million tonnes in 2009 to 9.4 million tonnes last year.
Ian Rodgers, director of UK Steel - a division of manufacturers’ organisation EEF - said: “The strong improvement in steel output during 2010 was encouraging, and reflects the pick-up in manufacturing activity experienced both in the UK and in our principal European export markets.”
He said the “disappointing” end to last year was largely due to steel supply chains running down inventory levels.
“As a consequence, many steel companies introduced extended shutdowns and maintenance closures during the Christmas period,” he said.
The overall surge in UK steel output last year will be a boost to SSI, which plans to complete the acquisition of the Tata-owned Teesside Cast Products (TCP) plant by March.
Earlier this month SSI president Win Viriyaprapaikit said he aimed to get the plant producing steel again by September at the latest.
If the deal goes through, it would make the Thai steelmaker the largest of its kind in south-east Asia.
Talks between SSI and Tata have gathered pace in recent months, with Mr Viriyaprapaikit describing TCP as the “perfect match” when he visited Redcar in September.
He also praised Teesside’s pride and passion for steelmaking, describing it as something he had never felt anywhere else in the world.
SSI plans to produce 3.5 million tonnes of slab steel from the TCP plant once it is at full capacity and export it all to Thailand. Previously around four-fifths of the site’s output was shipped to Europe, South America and Korea.
SSI also intends to add at least 800 staff to TCP’s current workforce of about 700.
Previously around 1,700 staff worked at the Redcar plant but more than half of them lost their jobs after it was mothballed last year
by Jes Davison, Evening Gazette
Feb 1 2011
2ShareSAHAVIRIYA Steel Industries (SSI) has almost doubled profits ahead of its anticipated takeover of the Tata steelmaking plant in Redcar.
A strong rally in the global steel market saw the Thai firm generate net profits of 2.57bn baht (£51.87m) in the year to December 31, comfortably outstripping the 1.33bn baht (£26.91m) recorded in the previous year.
Revenues rose 43.7% to 48.3bn baht (£0.97bn) while assets of 42.5bn baht (£0.86bn) were almost twice the value of liabilities (22.6bn baht or £0.45bn).
Although profits were below analysts’ forecast of 2.82bn baht (£56.8m), the results mark a year of growth for SSI on the back of a resurgent steel market.
Steel production increased by almost a quarter in the UK last year following a recovery in the world economy, according to a recent report by UK Steel.
The data showed output rose from 7.5 million tonnes in 2009 to 9.4 million tonnes last year.
Ian Rodgers, director of UK Steel - a division of manufacturers’ organisation EEF - said: “The strong improvement in steel output during 2010 was encouraging, and reflects the pick-up in manufacturing activity experienced both in the UK and in our principal European export markets.”
He said the “disappointing” end to last year was largely due to steel supply chains running down inventory levels.
“As a consequence, many steel companies introduced extended shutdowns and maintenance closures during the Christmas period,” he said.
The overall surge in UK steel output last year will be a boost to SSI, which plans to complete the acquisition of the Tata-owned Teesside Cast Products (TCP) plant by March.
Earlier this month SSI president Win Viriyaprapaikit said he aimed to get the plant producing steel again by September at the latest.
If the deal goes through, it would make the Thai steelmaker the largest of its kind in south-east Asia.
Talks between SSI and Tata have gathered pace in recent months, with Mr Viriyaprapaikit describing TCP as the “perfect match” when he visited Redcar in September.
He also praised Teesside’s pride and passion for steelmaking, describing it as something he had never felt anywhere else in the world.
SSI plans to produce 3.5 million tonnes of slab steel from the TCP plant once it is at full capacity and export it all to Thailand. Previously around four-fifths of the site’s output was shipped to Europe, South America and Korea.
SSI also intends to add at least 800 staff to TCP’s current workforce of about 700.
Previously around 1,700 staff worked at the Redcar plant but more than half of them lost their jobs after it was mothballed last year