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Britain’s Steel Crisis Deepens As Caparo Axes 450 Jobs

Alan Tovey, The Daily Telegraph

Crisis in Britain’s steel industry intensifies as administrators to Lord Paul’s Caparo Industries cut hundreds of jobs. Steelmakers are lobbying the government to cut their energy costs due to green levies added to their bills.

The steel crisis has claimed more jobs with 450 redundancies being announced at Caparo Industries following its collapse into administration almost a fortnight ago.

The company – part of Labour peer Lord Paul’s Caparo empire – buckled under the combined strain of competition from cheap imports of Chinese steel, high energy prices, onerous business rates and a heavy debt load.

The Telegraph broke the story revealing how administrators from PwC were to be appointed to the 16 businesses within Caparo Industries on October 19. They have since been trying to restructure the individual operations or find buyers for divisions that have been deemed viable to continue trading .

However, PwC announced on Friday that four businesses – Fairbright Wire, Caparo Tubes Tredegar, Caparo Atlas Fastenings in Darlaston, and Caparo Forging Europe in Dudley and Hartlepool – have closed with immediate effect, with jobs going in other parts of the group. In total 452 redundancies were made, leaving 1,200 staff within the business.

The latest job losses take the number of redundancies within Britain’s steel industry this year to around 4,700, following restructurings at Tata across its UK operations and the closure of SSI’s Redcar plant.

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