The steelwork giant said its Modular Solutions division based in Sherburn would be discontinued following a board-level assessment of markets, operations and group structure.

Chief executive Paul McNerney said the closure was an early step in reshaping the group’s strategy, with a broader update on growth plans due later this year.

The modular unit generated £24m of revenue and £0.4m of underlying pre-tax profit in the year to March 2025 but has since been hit by a tougher trading backdrop and a slowdown across the wider modular construction market.

Severfield said it had considered a range of strategic options before deciding to pull the plug, describing the operation as non-core to the group’s long-term focus on structural steelwork.

The move does not affect Construction Metal Forming, which will continue as a separate joint venture.

The group said it was working with affected staff and stakeholders to limit the impact of the closure, including through consultation and redeployment where possible.

Severfield said the decision would not change its expectations for FY26 underlying pre-tax profit or net debt.

Modular Solutions will be treated as a discontinued operation and the group does not expect a material cash impact.

The business continues to lean on its core steelwork operations, backed by a diversified £479m order book as at 1 January 2026.