Caparo Industries plc and its subsidiaries – collectively the “Caparo Industries group" or “CIP”- in administration
Published at 17:22 PM on 19 October 2015
Caparo Industries plc is a Midlands and London headquartered diversified industrial group. CIP comprises approximately 20 individual business which are active in UK steel and associated engineering businesses. Specific activities include the forging and pressing of metal products for aerospace, automotive and other industries. It also produces fastenings, wire, tubes and other accessories.
Earlier today a team of Administrators, partners and directors from PwC, were appointed Joint Administrators over the following companies within the Caparo Industries group:
(1) Caparo Industries Plc
(2) Caparo Engineering Ltd
(3) Caparo Steel Products Ltd
(4) Caparo Vehicle Products Ltd
(5) GW 957 Ltd
(6) Bridge Aluminium Ltd
(7) Material Measurements Ltd
(8) Caparo Precision Tubes Ltd
(9) Caparo Precision Strip Ltd
(10) Caparo Vehicle Technologies Ltd
(11) Caparo Tube Components Ltd
(12) Caparo Modular Systems Ltd
(13) Caparo Advanced Composites Ltd
(14) Caparo Accles & Pollock Ltd
(15) Caparo Tube Components 2 Ltd
(16) Caparo Atlas Fastenings Ltd
CIP is part of a global network of businesses under the Caparo name, with operations in China, India and the US. In addition to steel, Caparo’s global business is also involved in product development, materials testing services, hotels, media, furniture and interior design, financial services, energy and private equity investment.
Other than the companies specifically listed above all other business interests of Caparo are unaffected.
Specifically three subsidiaries of Caparo Industries plc are not in administration, these are Caparo Merchant Bar and Caparo India (both UK entities) and Bomet SA (a Polish business), those businesses continue to operate normally.
The Joint Administrators’ team from PwC will be rapidly taking control of the companies listed at (1) to (16) above. Employees across these entities of the Caparo Industries group totalling just over 1,700, will be briefed on the impact of administration at the businesses. Staff are attending work as normal and will be paid as normal, so in these respects it is business as usual while the Administrators' review gets underway.
The Joint Administrators will also be working closely with the senior management team at Caparo Industries group to rapidly contact key customers and suppliers with the objective of stabilising trading of the businesses while they assess opportunities to restructure or sell the businesses and their assets.
Matt Hammond, lead administrator and partner at PwC, said:
“This is a significant business with a wide range of interests across steel, engineering, vehicles products and technologies. Its scale and reach into significant customers and its importance to suppliers cannot be understated. We will be rapidly assessing all options for the businesses through this week and beyond.
“The impact of steel prices and exchange rates has had an impact on some parts of the Caparo Industries group. However 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 that 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.”
PwC Media Relations
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Katherine Howbrook, PwC Media Relations
Email: [email protected]
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