Caparo Industries administration: The reaction
STEWART Towe, chairman of the Black Country Local Enterprise Partnership and managing director of Smethwick steel business Hadley Group, said the kind of high value work Caparo produced would make it attractive to would-be buyers.
He said that unlike steel manufacturers such as Tata and SSI who were confined to the raw material, Caparo produced processed steel which went on to be used in advanced manufacturing industries such as automotive and aerospace which was why administrators were confident much of the operation – and jobs – could be saved.
Roy Rickhuss, general secretary of Community, the steelworkers’ union said: “This news is another devastating blow to Britain’s steel industry. Caparo’s workforce produce high quality finished steel products and has been battling against an increasingly challenging global market. The loss of 1,800 jobs would have a serious impact on the communities around Caparo’s workplaces.
“This news is a tragic reminder of the urgent need for government action to help our steel industry survive. Crippling energy costs and the dumping of cheap Chinese steel is threatening the very future of the UK’s steel sector.
“We will be working to support our members within Caparo at this difficult time and are seeking an urgent meeting with the company to understand exactly how this announcement will impact the workforce.
“This is an industry wide crisis. It is vitally important that Britain’s steel companies hold their nerve and that government works with unions and the industry to build a sustainable future for UK manufacturing with steel at its heart.”
