SLIDE 1
ATRADIUS INDUSTRY OVERVIEW Headlines UK Steel Industry in Meltdown - - PowerPoint PPT Presentation
ATRADIUS INDUSTRY OVERVIEW Headlines UK Steel Industry in Meltdown - - PowerPoint PPT Presentation
ATRADIUS INDUSTRY OVERVIEW Headlines UK Steel Industry in Meltdown Tata Steel Confirms 1,200 job losses British Steel in Crisis UK St Steel Se Sector Imploding Steel production in the UK has been in decline for
SLIDE 2
SLIDE 3
■ Atradius’ UK Steel exposure is primarily on the steel stockholders. Typically these are long
established and profitable businesses.
■ Stockholders supplies are mainly from the European mills, with purchasers benefitting from
favourable exchange rates.
■ Volumes from primary consumers (construction, automotive) are increasing as they gear up
for growth. The British Constructional Steelwork Association forecast 5.4% rise in demand for constructional steel.
■ Largest UK constructional steel contractor Severfield PLC state “order books are robust and
pipelines of future projects look promising”.
■ There is some optimism that the sectors performance will improve on the back of increasing
volumes as the wider economy shows strong signs of recovery and output for infrastructure grows (e.g. HS2).
The facts behind the headlines
SLIDE 4
■ Are Invoice Discounting Lines a concern? ■ New entrants into the UK Market have increased competition ■ Where is the main asset in your business? ■ Funding Working capital via working capital ■ Financing that grows with you ■ ID Lines are seen as Vanilla products ■ Often Credit Insured ■ Control over the debtor book is key – this is where concerns can be raised ■ Level of audit by lender ■ ID Lines are acceptable
Financing the Industry
SLIDE 5