PRESS DIGEST - British business - March 3

The Times

CONFIDENT FACTORIES MARK UP THREE MONTHS OF GROWTH

A survey from the manufacturers' organisation EEF and Grant Thornton out on Monday shows 15 percent more manufacturers reported a rise rather than a fall in output over the past three months, buttressing the belief Britain's manufacturers are holding up well in the face of the economic downturn. Steve Radley, chief economist of the EEF, said manufacturers remained confident about their immediate prospects despite the ongoing economic uncertainty and rising costs.

LABOURERS SQUEEZED AS BUILDING DRIES UP

Bricklayers, carpenters and plasterers are facing wage cuts of up to 10 percent as Britain's housebuilders tighten their purse strings after a cooling of the housing market. Neil Fitzsimmons, chief executive of Redrow (RDW.L: Quote, Profile, Research, Stock Buzz), said he had begun talks with suppliers to cut costs, ranging from contracts for construction workers to the price of carpets and curtains. Barratt (BDEV.L: Quote, Profile, Research, Stock Buzz), Britain's second-largest builder, is hoping to save some 100 million pounds annually from better deals with building material suppliers and contractors. Other builders, including St Modwen (SMP.L: Quote, Profile, Research, Stock Buzz) and Taylor Wimpey (TW.L: Quote, Profile, Research, Stock Buzz), are also embarking on cost-cutting regimes.

SHEFFIELD STEEL FIRM PRESSES AHEAD WITH PLANS FOR HEAVYWEIGHT

Sheffield Forgemasters (SFI), a 200-year old Sheffield metal basher, which was on the verge of bankruptcy two years ago before being rescued by a management buyout, is considering building a 15,000-tonne press to help satisfy the rising demand for parts following the global renaissance in nuclear power. The company is talking to potential backers, including venture capitalists, about funding the 70 million pound investment in the 15,000-tonne press. SFI is one of the few forging specialists in the world with the requisite knowledge and experience to produce components for the latest generation of nuclear power plants.

The Daily Telegraph

BREAK-UP OF SOMERFIELD "LOOKS LIKELY"