Friday, June 10, 2005

Steel Strip demand remains low

It’s two months on from the Rover collapse and still too early to assess the long term effects.
It’s clear from talking to steel strip suppliers and users alike that things are very quiet in the UK at the moment. High stocks and flat demand are resulting in low activity. Add to that the Rover effect, and the approaching summer holiday season, and it’s apparent that things are unlikely to change until the third quarter.
Wagon Industries have announced 100 job losses in the wake of the Rover collapse. The company is a major supplier to the automotive industry, and the loss of the Rover contract has had a negative impact on the business. They are closing a stampings factory in Oxford as a direct result of the Longbridge shut down.The company employs 500 people in the West Midlands, and despite the loss of the Rover business their Chief Executive Pierre Vareille stated that forward orders remain healthy.
As part of a post-Rover initiative, companies hit by the Rover closure are being invited to a “meet the buyer” event organised by the Birmingham Chamber of commerce, more details here .

No comments: