Severfield has acquired Dam structures – an innovative steel fabrication company – to widen its supply chain and grow with the railway sector
The core business of Dam Structures involves on-site work with main contractors and ground and demolition contractors, often prior to the stage of project construction at which Severfield would typically become involved.
The acquisition will allow Severfield to establish relationships and contracts at an earlier stage in site development with both existing and new customers.
Prior to the acquisition, Dam Structures was approaching its maximum production capacity, which had the potential to constrain its future growth. With the scale and capabilities of the group, the acquisition will facilitate an immediate increase in the production capacity of Dam Structures, enabling the company to realise the growth opportunities which have been identified.
In addition to its core steel fabrication markets, the company operates in the propping, railway and steel piling markets. Within the railway sector, there are significant opportunities for growth in the UK from Network Rail electrification programmes and elements of the HS2 project that are not currently addressed by Severfield, such as temporary and permanent tunnel work.
The company operates from its premises in Carnaby and can currently process up to 300 tonnes of structural steelwork per week for distribution across the UK.
Dam Structures currently has 76 employees.
‘An exciting and highly complementary acquisition’
Alan Dunsmore, chief executive officer of Severfield plc, said: “This is a very exciting, highly complementary acquisition which will help the group continue to deliver on its strategic growth objectives.
“Dam Structures will provide us with access to existing and new customers earlier in the construction process as well as access to new market sectors with strong growth potential including the growing rail electrification sector.
“Dam Structures has an established client base and proven track record of delivering quality services and will fit in well with the Severfield culture and team.
“We look forward to working with the Dam Structures management team on building new business opportunities together and driving future growth from within the combined group.”