Steel company Caparo Industries(CIP) is cutting 452 jobs across its United Kingdom sites after going into administration earlier this month.
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“Following a detailed review of the businesses it is with regret that we now announce 452 redundancies with immediate effect”, PwC said.
Thousands of job losses have been announced in the steel sector in recent weeks, with the collapse of SSI in Redcar, Cleveland, and cutbacks at Tata Steel in North Lincolnshire and in Lanarkshire. “We will work closely with them, their representatives and agencies to ensure that their redundancy and other claims are handled efficiently at this hard time”.
Joe Morgan, GMB Birmingham & West Midlands regional secretary, said: “It is greatly disappointing that the receivers have felt the need to let people go”.
“We are still of the opinion that Caparo can be saved”.
Matthew Hammond, lead administrator, said that staff being made redundant at the affected businesses had been paid in full for their work.
It is understood about that the administrators received about 80 approaches from potential buyers for companies within Caparo Industries but no sales have yet been agreed.
“The failure of the government to intervene to support the steel industry and develop an active industrial strategy is leaving the industry on the brink”.
Unite pointed out that the latest grim news came on the same day as the Government launched a National Infrastructure Commission. Job cuts will happen across a number of sites – the largest of which is Darlaston, where 122 jobs will be lost.
Specifically three subsidiaries of Caparo Industries plc are not in administration, these are Caparo Merchant Bar and Caparo India (both United Kingdom entities) and Bomet SA (a Polish business), those businesses continue to operate normally.
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A steel summit to be held in Brussels is also to address China’s role in the industry.
