Second Caparo subsidiary rescued out of administration

A SECOND subsidiary of troubled steel firm Caparo Industries has been sold out of administration.

Just days after Spanish firm Applus+ agreed to acquire the non-destructive testing (NDT) business and assets of Oldbury-based Caparo Testing Technologies – securing the jobs of 80 people – administrator PwC has announce the sale of Caparo Wire in Wrexham to Rcapital, safeguarding the jobs of 79 employees.

The deal is the second to be agreed since administrators at PwC announced more than 450 job losses – including 323 in the Black Country – at Caparo at the end of October.

The engineering group collapsed last month after falling victim to cheap steel imports from the likes of China.

Caparo’s Wrexham business specialises in the manufacture of high quality galvanised and engineering steel wire. This can be used in a wide range of applications such as: bedding and seating; fasteners and screws; and spring wire for fencing and plating.

Robert Moran, partner at PwC, leading the Caparo sales process, said:
“The sale of Caparo Wire is another great result for the staff employed there and is the second deal to be completed, following the recent sale of Caparo Testing Technologies.

“We would like to thank all of the Caparo people involved for their dedicated support in securing this transaction.

“We continue in advanced discussions with parties relating to interest in other Caparo Industries Group companies.”