Bone Steel builds for a successful year with string of construction contracts worth £8m

BONE Steel, the Wishaw-based fabricator, has secured a string of contracts totalling more than £8 million, as the company continues to defy the construction industry downturn.

The group said it had enjoyed a "successful start" to the new year, helped by business wins with a number of major contractors, including Carillion, Mansell and Miller Construction.

Bone steel products will now be put to use in the construction of six schools in the south and north-west of England, a waste recycling plant in Leicestershire, a multi-storey car park in east London and a commercial development in Edinburgh.

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The firm admitted it had endured "a difficult 18 months" as developers battened down the hatches but said it had "demonstrated resilience" by adapting "swiftly" to the challenging market conditions.

Commenting on the recent contract wins, which also include a deal with Bourne Parking, chief executive Chris Bone said: "We have enjoyed an extremely encouraging start to the year and we are well positioned to secure further large-scale contracts from our key customers.

"Despite the difficult trading conditions which have affected everyone operating within the construction industry, there is still work out there to be won and this is reflected in our current pipeline of bid work, which stands at over 200m."

He said the firm, which was founded in 1938 and has regional offices in London and Leeds, had seen a reduction in turnover in 2009, mainly due to the reduction in raw material costs, adding that management was "working closely" with suppliers "in order to mitigate the impact of significantly reduced margins".

Bone said the group has just re-negotiated its banking facilities "with the full support and commitment of our shareholders".

Last October, Bone Steel supplied and erected more than 2,300 tonnes of steelwork for the new 32m regional sports centre at Ravenscraig, described by the firm as a "significant project".