This morning the firm announced it had struck a deal to effectively take over Sherling Steel UK’s steel profiling operation at the Engine Lane site for £4.88m.

Billington is paying £2.5m to buy the 25-acre site from owner Sabler, which contains two industrial buildings totalling 181,000 sq ft. At the same time it is paying Sherling Steel UK £2.38m for steel fabrication and lifting equipment at the works .

Later the facilities will be adapted for optimum production and, within three years, the directors believe that the new facilities will significantly increase the output of Billington’s structural steelwork divisions.

The move has raised speculation that Billington is shaping up for a big push at the London office building market or fast-growing shed sector.

The new plant (above) will complement the firm’s Barnsley and Bristol facilities as well as present opportunities later to diversify its current operation.

Chief Executive Officer, Mark Smith said that there would be a period of transition to enable a suitable workforce to be recruited that possessed the required skillset for the anticipated form of fabrication that it intend to offer at the works.

“It is an exciting period of change for Billington and one that the directors believe will further strengthen the company’s market position through increased capabilities, capacity and product offerings”.