Link-up sees Severfield looking at huge expansion in India

Known best in the UK for its work on the Shard, the 2012 Olympics and the Emirates stadium, Thirsk-based Severfield's joint venture with India's third-largest steelmaker JSW Steel, is being backed by the UK Government.

Following Prime Minister David Cameron's visit to India earlier this year, the Government is keen to encourage UK export and trade with India.

The joint venture will produce 35,000 tonnes of steel a year, which would make it the third biggest steel fabrication plant in the UK if it was located here.

It will target the 100bn Indian construction market, which is growing at about nine per cent annually.

The group hopes its expertise in high rise schemes, big retail developments and power stations will prove invaluable. The aim is to achieve sales of 50m in the first year and to match UK earnings by 2012-13.

Severfield said trading is in line with expectations and the group is well positioned for the challenging UK market conditions over the next 12 months. The UK order book stands at 251m.