Britain’s biggest steelwork contractor Severfield has shut down its modular arm after a strategic review by its new chief executive concluded the business was sub-scale and non-core
The decision followed a strategic review of markets and operations led by new chief executive Paul McNerney, who joined the firm in November.
In a statement to the London Stock Exchange today (29 January), the company said: “The board has concluded that the Modular Solutions business represents a sub-scale, non-core activity of the group.”
In the year to 29 March 2025, the Modular Solutions division generated £24.2m in revenue – 5 per cent of the group’s £450.9m turnover – and reported £400,000 in underlying pre-tax profit.
It specialised in designing and manufacturing modular steel components and frames for the construction industry.
But its performance worsened in the current financial year amid tougher trading conditions across the modular sector, Severfield said.
Modular firm failures since last April include Jans Offsite Solutions, Elements (Europe), Kingston Modular Systems and, most notably, Merit in November 2025.
The closure of Severfield Modular Solutions does not include Construction Metal Forming, a cold-rolled steel joint venture with South Wales-based CMF, which will continue to operate independently.
The group’s core business remains focused on structural steelwork, where it reported an order book of £479m as of 1 January 2026.
Image: https://www.constructionenquirer.com/2026/01/30/new-severfield-boss-shuts-modular-arm/
