SIAC Construction is to employ 70 people at the former Butler Engineering plant in Co Laois and hopes to break even in the first year. The civil and engineering construction group said it was at an advanced stage with a number of new orders.
SIAC's managing director, Mr Finn Lyden, said yesterday that company would concentrate on having fast response times to supply orders as they were needed on site. This would give the firm a competitive edge on other steel companies who, by tradition, had slower lead in times for order deliveries.
He anticipated that half of the orders would be sourced from outside Ireland, especially in the middle east and eastern Europe. The company has formed a strategic alliance with a Dutch steel company, Romein Staalbouwe, to develop export markets where neither company is already active. The partners will be seeking orders in excess of £1 million.
Mr Lyden said the new company, which will trade as SIAC Butlers Steel, aims to achieve sales of £6 million in its first year. "Butlers Engineering always achieved that," he said, "and it should be attainable as the Irish market is particularly buoyant at the moment."
He added that the company had the potential to grow sales to £15-£20 million a year.
Mr Lyden said it was a good time for SIAC to buy the business as the British market, which had been in the doldrums, was expected to pick up.
The company confirmed yesterday that it had paid £5 million for the Butler's plant which went into receivership earlier this year with debts of £24 million. It is one of the most technologically advanced steel fabrication plants in Europe.
In effect, SIAC hopes to do the same amount of business as Butlers with virtually half the number of staff. There are two plants on the 34 acre site. Mr Lyden said the older plant would be used as a back up for the moment. He said it was possible that the previous level of employment would be attained, but not for some years.
SIAC hopes to recoup its £5 million investment in seven years. The acquisition was purchased through a combination of company funds and borrowings.
