Partner Article

Sembcorp powers on

UTILITIES group Sembcorp believes cost-cutting and the contruction of a new steam turbine on Teesside will help it recover from a £59m dent in annual turnover partly caused by the loss of two major contracts during the downturn. The company, based at the Wilton International site in Middlesbrough, saw its annual turnover fall from £230m to £171m in the year ending December 2009. The firm blamed the loss of its contract with fellow Teesside company Artenius, which fell into administration half way through the year, and the blow caused by the decision of another client, Invista Textiles, to cease operations at Wilton in the second quarter. Artenius has since been rescued by investors, although this year has seen the loss of another larger contract with Dow and the downstream Croda facilities which have also ceased production. The company, which supplies heat, power, industrial gases and support services to its clients, said: “The directors remain confident that the company will maintain a satisfactory level of performance in the future. “They are confident that the cost restructuring programme undertaken in the year, in response to the loss of customers, together with the company’s commitment to build a new 50MW steam turbine will strengthen the company’s asset and cost base.? Last year the firm’s profits stood at £43.8m, compared to £47.7m the previous year.

This was posted in Bdaily's Members' News section by Ruth Mitchell .