British Steel buy-out to spend £50m

United Engineering Forgings, the £75m buy-out from British Steel, is looking to invest up to £50m over five years. The company wants to upgrade its UKfacilities by employing some of the funds from the original buyout capital of £92m and cash flow from turnover. Directors are expected to approve the first tranche of investment, £20m […]

United Engineering Forgings, the £75m buy-out from British Steel, is looking to invest up to £50m over five years.

The company wants to upgrade its UKfacilities by employing some of the funds from the original buyout capital of £92m and cash flow from turnover.

Directors are expected to approve the first tranche of investment, £20m for the next two years, in April. It has not yet been decided which of its five UK plants will benefit.

The additional investment will be decided later. `Capital expenditure depends on the way volume sales go,’ said Ralph Madden, UEF’s finance director.

Up to 80% of UEF’s £165m turnover comes from the automotive sector, a market which it describes as flat.

UEF was bought out by its management and a capital venture company in January. Chairman Bob Bates, formerly a director of T&N, promised investment in product innovation and advanced manufacturing.