There are fears for jobs at a Wrexham Factory today with Caparo Steel entering administration.
Administrator PwC have confirmed their appointment with Caparo entering administration. PwC have said employees are continuing to attend work and will be paid as normal. PwC’s Matt Hammond said: “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.”
16 companies within the Caparo Industries Group are in administration, however three more Caparo Merchant Bar, Caparo India and Bomet SA ‘continue to operate normally’ and are not in administration.
Original information below…
The firm which has 20 sites across England and Wales employs around 1,800 workers across the country and is one of the major steel companies in the UK.
Reports say that the company could enter into administration at some point during the day, with cuts expected to impact factories across the country.
Caparo Industries also has a ‘Caparo Wire’ site based on Ash Road at the Wrexham Industrial Estate. It is not known how many jobs will be lost from the Wrexham site.
The future of the Wrexham site was also thrown into doubt last year when Caparo announced plans to close one it’s facility’s on the Wrexham Industrial Estate.
PricewaterhouseCoopers (PwC) were announced as administrator’s for the firm, with Sky News reporting that PwC are holding talks to secure a buyer for the company.
The announcement from Caparo Industries follows the news that 2000 jobs will be lost following the closure of SSI’s steel plant in Teeside.
We are awaiting official comment / statement from PWC and others and will update when we have more information…