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Wescol Group PLC (WCL)

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Thursday 06 July, 2000

Wescol Group PLC

Trading Statement, etc.

Wescol Group PLC
6 July 2000


                    Wescol Group plc
         Trading Statement - Management Changes


Wescol  Group  plc  ('the Company') makes  the  following
announcement  covering  current  trading  and  management
changes:

Trading Statement

Owing   to   weak   market  conditions  and   operational
difficulties, profits for the full year to 31st July 2000
are likely to be substantially below market expectations.

In  the  interim report last April reference was made  to
the  weakening  domestic market for structural  steelwork
together with some operational difficulties.  These  were
more  complex to resolve than was anticipated,  and  have
affected  trading results.  A number of further  measures
including system and organisational changes have been and
are  being  introduced.  The Company is now confident  of
eliminating  those  operational difficulties  that  still
remain.  The market remains very competitive, but  tender
activity and order intake are improving.

Management Changes

Alan  Walker,  Group Managing Director, has decided  that
for  health  reasons he should reduce the  level  of  his
involvement in the Company.  Accordingly, Mr Walker  will
step  down as a Director with effect from 31st July 2000.
Whilst  reducing his commitment in this  way,  Mr  Walker
will  remain with the Company on a consultancy basis with
responsibilities  for relations with a  number  of  major
clients.

Richard  Hill, who is currently a non-executive  Director
of  the Company, has accepted the position of Group Chief
Executive   in  order  to  implement  the  organisational
changes taking place in the Company which are expanded on
below.

Additionally,  the  Company has identified  a  new  Chief
Executive  for  Wescol  Glosford,  the  Company's   major
subsidiary, and he will be appointed in the near  future.
It  is also anticipated that he will be appointed to  the
Board of Wescol Group plc.

Operational Changes

The  activities of Wescol Glosford are being  split  into
two trading divisions, based at the Company's offices  at
Halifax  and  Worcester.  Managing  Directors  have  been
appointed  at  each  division to improve  efficiency  and
accountability.  This will allow management to  focus  on
different sectors of the UK market.  The Halifax division
will  develop  further the Group's reputation  for  major
technically  demanding  projects,  while  the   Worcester
division will concentrate on mass market manufacture  for
the single storey industrial/retail sectors.

We  are pleased to report that actions taken at Westok to
correct  the problems reported at the interim stage  have
been  successful,  and that Westok has returned  to  good
levels of profitability.

Conclusion

The  Company retains its position as a leading player  in
the  UK constructional steelwork market, and has the full
support   of   its  major  shareholder,  Salzgitter   AG,
Germany's second largest steel manufacturer.

The Board is confident that the actions taken will return
the  Company  to  satisfactory  levels  of  profitability
during the forthcoming financial year.


Enquiries:

Richard Hill, Chief Executive
Wescol Group plc                        01422 319500

Stephen Brown, Finance Director
Wescol Group plc                        01422 319500

Mark Way
Bell Pottinger Financial                020 7353 9203



                                                                                
                             

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