Hill & Smith Holdings PLC, the international group with leading positions in the supply of infrastructure products and galvanizing services to global markets, is well placed to benefit through its US based businesses as President Obama signed his $787 billion American Economic Recovery and Reinvestment stimulus bill.
Hill & Smith provides infrastructure products to sectors that will benefit from around $45 billion of additional investment including highway infrastructure of $27.5 billion, and energy grid spend of around $17 billion.
The final Bill targets highway infrastructure as a priority investment, allocating $27.5 billion to spend on "shovel ready" (those starting construction within 100 days) projects to modernise the US transport network.
Hill & Smith has a range of established US based businesses set to benefit from this accelerated spend, including:
ZONEGUARD (Temporary workzone protection)
The stimulus package proposed will provide 100% of funding for highway projects - in contrast to the previous requirement for states to match the investment. With the emphasis on "shovel ready" projects Hill & Smith will be well placed to supply Zoneguard, a durable portable steel traffic barrier, which is the most rapidly deployed and cost efficient portable barrier protection system available in the US.
BRIFEN USA Inc. (Wire Rope Safety Fence)
Brifen, a licensee of Hill & Smith Ltd, provides Wire Rope Safety Fence ("WRSF") for highways across the US. The speed of installation and lower life cycle costs makes Brifen WRSF well placed to benefit from the "shovel ready" stipulations of the safety projects. Well over half of the US States currently have Brifen WRSF in use today and the Company anticipate hundreds of miles of additional WRSF barriers will be built as a result of the bill.
Galvanizing Services
In 2008, over 50% of Hill & Smith's galvanizing production in the US was in materials for the Highways, Bridge Maintenance and Power Generation sectors, all of which will benefit from the stimulus Bill.
Utilities
Hill & Smith's US Utilities business, which manufactures structural steel work for transmission lines and sub-stations will also benefit from Obama's endorsement of a sweeping upgrade to the century old power grid.
Derek Muir, Group CEO, Hill & Smith Holdings PLC commented: "President Obama's stimulus bill heralds increased government spend on its ageing infrastructure and is the most exciting thing to happen in the US highway infrastructure industry since the Interstate system was built over 50 years ago.
"Hill & Smith is well positioned to provide quick delivery of our products in response to this investment. This reinforces the success of our strategy of focusing on the growth of our infrastructure and galvanizing businesses and development of our product offerings in the USA. We are excited about the opportunities that will arise from this accelerated spend across the US."
ENDS
Further information
Hill & Smith Holdings PLC
Derek Muir (Chief Executive)
+44 (0)121 704 7430
Hogarth Partnership Limited
John Olsen / Barnaby Fry / Vicky Watkins
+44 (0)20 7357 9477
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