Business

Steel and Tube investing for future

09:10 am on 18 August 2014

Steel and Tube is confident about its future growth prospects despite overcapacity issues and increasing geopolitical uncertainty, the head of the company says.

The steel product manufacturer on Friday reported its full year profit rose 14.7 percent.

Profit was $15.6 million on revenue of $441.4 million which was in line with the company's expectations.

Steel and Tube chief executive Dave Taylor said the firm had benefited from a strong New Zealand economy over the past year.

The company was reinvesting for the future with the construction of two new Auckland-based facilities and another in Palmerston North was being redeveloped.

International prices were under pressure due to China looking to place significant quantities of steel in the export market as domestic demand eases.

However Mr Taylor said his firm was was optimistic about the levels of construction activity in New Zealand, manufacturing was stable and the rural sector was continuing to do well.