It is likely that falling market prices and expensive importing has led to the company’s financial problems. Around 1,700 workers based across England and Wales will be at risk of losing their jobs. At the beginning of October, SSI UK (which operated a steel plant in Redcar) went into administration – resulting in thousands of redundancies.
There has been speculation that the business was reviewing funding options over the weekend, however it looks like administration will the next step.
Update: 20/10/2015 – Sixteen out of twenty divisions at Caparo will go into administration. PwC will begin to review the business while employees work as normal. Joint administrator, Matthew Hammond from PwC said in a statement, “there are businesses in the group that are not directly affected by steel prices, and likewise many where there is both strong customer demand and critical supplier support.”
“Our focus for the next 36 hours is on briefing staff across the group and working closely with their management teams to ensure every opportunity for these businesses is considered”.
“We will be working with all parties to ensure the best outcome for all creditors of each business.”
The divisions placed into administration are as follows:
- Caparo Industries Plc
- Caparo Engineering Ltd
- Caparo Steel Products Ltd
- Caparo Vehicle Products Ltd
- GW 957 Ltd
- Bridge Aluminium Ltd
- Material Measurements Ltd
- Caparo Precision Tubes Ltd
- Caparo Precision Strip Ltd
- Caparo Vehicle Technologies Ltd
- Caparo Tube Components Ltd
- Caparo Modular Systems Ltd
- Caparo Advanced Composites Ltd
- Caparo Accles & Pollock Ltd
- Caparo Tube Components 2 Ltd
- Caparo Atlas Fastenings Ltd
If you are an employee of the business, please listen to the video below as it will tell you your rights as an employee. There is a link at the end of the video to the Government website which expands further on what you need to know. Any queries should be directed to PwC who are handling the administration.