SEVERFIELD-Rowen has said it is maintaining its strong position in the UK market, despite warning that recovery remains distant.

The structural steel business, based in Thirsk, said demand in the UK remains at relatively low levels with little prospect of improvement in 2011, in an interim management statement for the period from January 1 to May 18.

However, it said it had a healthy workload in place for each of its four operating plants until at least September, from its order book of £221 million.

Prices are tight but have improved marginally with prospects 2011 and 2012 mainly in industrial, transportation, waste to energy and commercial office.

The business said its experience and abilities are being successfully focussed into international markets where opportunity remains strong, including its JSW Severfield Structures Ltd (JSSL) joint venture in India, which is increasingly recognised in the market and where demand is “robust” across all sectors.

Although it is below output and income targets in the year to date, large individual orders and an order book to £36 million, up from £33 million since March 22, gave it confidence production volumes and revenues would be on, or ahead of, schedule during the second half of 2011.

As a result of the demand, predominantly in the industrial and power sectors, with a smaller, but growing proportion of multi-storey commercial and residential buildings, the business announced plans to increase its output over the summer.

The statement said: “Notwithstanding these opportunities, the prevailing forecasts for the UK economy and construction sector, lend support to the company's view that a broad recovery remains distant. The company's focus remains on the sectors where activity and opportunity are being sustained.”

The company’s annual general meeting will take place on June 8 at Solberge Hall Hotel, Newby Wiske, at 12pm.