Severfield may have identified up to twelve bridge projects in its programme with ‘weld problems’ and is currently working with industry experts to resolve the issue.
In a trading update issued this morning, CEO Alan Dunsmore said several structures had been found to have “sub-optimal” welding and were not compliant, all undertaken within the past four years.
He added, while the precise nature of the overall remedial work required had not yet been fully determined, the business is expecting to incur costs in the amount of £20.4 million to put things right.
The structural steel group has already spent £7.1 million on testing and remedial works and expects to incur a further £13.3 million in costs.
Severfield added it will be pursuing “all potential recoveries” from third parties, including insurance.
While Severfield did not specify the name of the client it was building bridges for, nor where the structures are located, it confirmed the discovery had not affected the safety of any operational bridges.
“Since the publication of the 2024 results, the group identified some bridge structures which were not in compliance with the client’s weld specification requirements, predominantly relating to twelve bridge projects that are either ongoing or were completed over the past four years,” said Dunsmore.
“The issues all arise out of a particular bridge specification and related sub-optimal choices of welding procedures, exacerbated by limitations in the specified weld testing regime for these projects.”
He added: “A comprehensive review is currently being undertaken by the group, in conjunction with its affected clients, relevant industry authorities and insurers to fully understand the extent of the actions required to resolve the issue, which has not affected the safety of any operational bridges.
“Notwithstanding this, we are continuing our work on ongoing road and rail bridges for a variety of clients, which we are confident will meet the required specification.”
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