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Caparo Industries Enters Partial Administration - RBR

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Reviewed: 20th October 2015

Tata Steel confirmed on Monday that it will be shedding close to 1,200 jobs at its plants in northern England and Scotland, while almost at the same time the steel maker Caparo Industries was being officially entered into partial administration.

The news on both fronts marks another day of devastation for the UK’s steel industry, which has been losing jobs and sizable industry operators at an alarming rate over the past several weeks.

Tata Steel signalled its intention to cut jobs in the UK on a considerable scale last week but confirmed a total of nearly 1,200 redundancies on Monday.

The job losses are split between Tata facilities in Scunthorpe and Lanarkshire, with the site in North Lincolnshire set to see some 900 redundancies and around 270 jobs set to go at Tata’s plants in Scotland.

A collapse in steel prices attributed to the availability of cheap imports from China is being cited as the primary cause of the woes currently being experienced by the British steel industry.

Elsewhere, the steel products group Caparo Industries has appointed administrators to 16 of its businesses in a move that puts hundreds of jobs in potential jeopardy.

Administrators have said that they will be working with Caparo’s senior management in an effort to stabilise trading and find buyers for operations and assets owned by the various businesses.

A total of 1,700 employees could be impacted by the partial administration that has left just three of Caparo’s operations unaffected.

Administrators said in a statement: “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.”

The UK’s shadow business secretary Angela Eagle said of Caparo’s partial entry into administration: “This is a further blow to the steel industry, which is now on its knees, and my thoughts are with the employees of Caparo who are facing uncertainty over their future.

Last month, the steelmaking plant of SSI UK in Redcar was mothballed and more than 2,000 jobs have since been lost at what was one of the most productive facilities of its kind in Britain. With 75 offices across the UK, you’re never far away from expert and confidential advice.

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