Listed steel contractor Severfield-Rowen is to invest £4m this year in Watson Steel, the former Amec subsidiary it acquired for £2.6m last November.
Watson Steel is expected to be heavily involved in work at Heathrow's Terminal 5. Severfield-Rowen is airport operator BAA's structural steelwork partner at the development.

The investment was announced this week in Severfield-Rowen's 2001 full-year results. The company's pre-tax profit fell more than £4m on the previous year to £6.5m.

Severfield-Rowen chairman Peter Levine said: "In the face of very difficult market conditions, Severfield-Rowen has produced a very resilient set of results, which are particularly pleasing when placed in the context of the sector as a whole."

The results also saw turnover up 13.1% on 2000 to £145.8m.