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BE Group to Develop New Construction Steel Production Plant in Sweden

BE Group (STO:BEGR), the Nordic region’s leading independent trading and service company in steel, stainless steel and aluminium, is extending its capacity in construction steel.

This is being achieved through the investment in a state-of-the-art production facility in Kungälv, Sweden.

“The new facility will be unique in Sweden and entirely in line with our strategy to advance BE Group on the value chain by increasing our production service offering,” says Torbjörn Clementz, CFO and Deputy CEO of BE Group. “Among other reasons, we are investing SEK 36 M in this facility to be able to meet the construction industry's increasing demand for steel frames for major projects and those requiring special expertise.”

In October 2010, BE Group acquired steel construction company Lecor Stålteknik AB in Kungälv, which employs 26 people and generated sales of SEK 146 M in its most recent year of operations. Customers include the Swedish Transport Administration and several companies in the construction and process industries.

“It feels positive that we will soon have access to a completely new and modern production facility for prefabricated construction steel,” says Stefan Eklund, Business Area Manager, Sweden. “There is extensive need in Sweden to develop more cost-efficient steel structures through increased automation. Lecor's expertise in construction, production, project management and steel engineering combines with BE Group’s purchasing and marketing organization and broad customer base to offer a strong proposition. I am convinced that our customers appreciate this and we hope to be able to recruit some ten new employees in 2011.”

The new facility will enter operation during the third quarter of 2011.

Source: http://www.begroup.com

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