Caparo Industries plc and its subsidiaries – collectively the “Caparo Industries Group" or “CIP” - in administration UPDATE

Published at 15:13 PM on 30 October 2015

On Monday 19 October, Administrators from PwC, were appointed to 16 companies within the Caparo Industries Group. These companies were:

(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

Caparo Industries Group comprises a Midlands and London headquartered diversified industrial group involved in the forging and pressing of metal products for aerospace, automotive and other industries; as well as the production of fastenings, wire, tubes and other products.

CIP is part of a global network of businesses under Caparo name, with operations in China, India, US and South America.   Other than the companies specifically listed above all other business interests of Caparo are unaffected.  Specifically Caparo Merchant Bar and Caparo India (both UK entities) are not in administration and those businesses continue to operate.

Since their appointment, PwC's Administrators have been working closely with CIP, its customers, suppliers, employees and their representatives including three trade unions.  Following a detailed review of the CIP businesses it is with regret that we now announce 452 redundancies with immediate effect.  The affected locations and related numbers are as follows:

Darlaston 122

Hartlepool 79

Oldbury 68

Dudley 64

West Bromwich 59 

Tredegar 17

Wrexham 12

Cradley Heath 10

Other 21

Total 452

 

Those staff affected by today's announcements have been briefed.  Working closely with their representatives, the Redundancy Payments Service Rapid Response team and other agencies we will be providing support to those affected in order to address their claims for redundancy and notice. 

The Administrators have confirmed that all staff affected have been and will be paid until the close of business today and thank them for the support, service and co-operation that they have provided to CIP.

Matt Hammond, PwC partner and lead Administrator said:

"It is with regret that we have made these decisions today, but the commercial prospects of the affected businesses render them unviable. 

"We thank those former members of staff for their service to CIP; we will work closely with them, their representatives and agencies to ensure that their redundancy and other claims are handled efficiently at this difficult time. 

"We will also work closely with other bodies who naturally will want to assist at this time with regard to future employment opportunities."

More than 1,200 staff remain employed in  CIP. They continue to work and be paid as normal at the following CIP businesses and locations which are operating on a ‘business as usual’ basis:

Engineering Division

Accles & Pollock

Bridge Aluminium

Caparo Tube Components

Caparo Precision Tubes Oldbury

CMT Engineering

Testing Technologies

Steel Products Division

Caparo Wire

Hub Le Bas

Caparo Precision Strip

(Regrettably the businesses at Fairbright Wire and Caparo Tubes Tredegar have closed with immediate effect)

Vehicle Technologies Division

Caparo Vehicle Technologies

Clydesdale Jones

Caparo Modular Systems

Caparo Tube Components 2

Caparo Advanced Composites

(Regrettably the Caparo Atlas Fastenings business at Darlaston and Caparo Forging Europe (at Dudley and Hartlepool) have closed with immediate effect) 

Matt Hammond, lead administrator and partner at PwC concluded:

"At this difficult time, our focus, together with the 1,200 strong CIP team, remains on keeping these businesses stable and satisfying all customers who are supporting the operations, while exploring all options and interests for the disposal of the businesses. 

"We are encouraged by the interest expressed in many of the businesses and hope to make substantial progress on this during November.  We would like to thank all staff for their continued commitment and we will make every effort to help the workers affected by today’s announcement."

ENDS

For more information please contact

David Jetuah

02072121812

david.jetuah@uk.pwc.com

 

Katherine Howbrook

Tel: 020 7212 2711

katherine.j.howbrook@uk.pwc.com

 

Pippa Whittaker

0121 265 6639 

pippa.whittaker@uk.pwc.com

 


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