Declining demand for steel

Materials handling specialist Clyde Process Solutions has reported a £4.4m loss in orders, owing in part to delayed contracts as a result of falling demand for steel in Europe.

In a pre-close trading update, the Doncaster-based company said that its order book at the end of January was at £23.5m, compared with £27.9m in the same period last year.

The company attributed the loss to challenging trading conditions and a decline in demand for steel within Europe - a situation that is expected to improve in 2010.

However, the company said that it is confident of performing well in the year ahead with increased demand for energy-efficient production processes driving interest from producers in North America and South Africa - areas where the group has won more than £11m in orders in the last three weeks.

The company’s subsidiaries, MAC Equipment and Clyde Materials Handling, have also secured a £9.3m contract through their combined pneumatic conveying expertise.