GMB WELCOME SALE OF 10 CAPARO SITES SAVING A TOTAL OF JOBS OF 623 WORKERS IN WEST MIDLANDS AND NORTH EAST
It has been a worrying few months for the workers that are left at Caparo and we indeed hope they can now enjoy the festivities says GMB
GMB, the union for steel and engineering workers, commented on the sale of substantially all of the remaining businesses and assets of Caparo Industries Group to the Gupta Family with 623 staff being transferred as part of the deal. See notes to editors for copy of PwC press release dated 11th December.
Russell Farrington, GMB Regional Officer, said: "This is excellent news for the West Midlands at this time of year, coming up to Christmas. This will hopefully put workers minds at rest at this uncertain time. It has been a worrying few months for the workers that are left at Caparo and we indeed hope they can now enjoy the festivities.
Over half of the workforce has been saved totalling 623 employees with the sale of 10 Caparo sites being sold to the Gupta family. These skilled workers have shown loyalty under very difficult circumstances.
GMB has been focused on the need to save as many jobs as possible. We are delighted that a total of 1,111 Caparo workers have new owners and remain in employment.
We have made progress on the energy prices front for the UK steel industry. We now need action on dumping."
Contact - Russell Farrington on 07957 266519 or Joe Morgan 07794 247 960 or Sam Jones on 07939 874 272 or Stephanie Peacock on 07841 763521 or GMB press office 07921 289880 or 07974 251 823
Notes to editors
Copy of PwC press release dated 11th December.
For immediate release
Update on Caparo Industries plc and its subsidiaries – collectively the “Caparo Industries Group" or “CIP” – in administration
PwC is delighted to confirm the successful conclusion of the sale of substantially all of the remaining businesses and assets of Caparo Industries Group. This latest in a series of major transactions involves the sale of 10 businesses to the Gupta family, whose interests include the SIMEC and Liberty House groups. This follows another series of transactions between the Gupta family and administrators from PwC two weeks ago.
Matthew Hammond, Midlands Region Chairman for PwC and Caparo lead administrator said:
"We are delighted to have completed the sales, it is great news for the Midlands and the key manufacturing sites, particularly with so many skilled staff in these industries being given security at this time of year. This has been a complex and challenging assignment given the size and number of the business operations. Only by working alongside the talented Caparo people have we been able to achieve this result.
“Throughout what has been a difficult time, PwC has remained committed to achieving the goals of the administration: to keep the business going and find the best solution for staff and creditors. In particular the supply chain can also now look forward to 2016 with a good deal more certainty with these businesses in the hands of an experienced investor across these sectors. We thank the customers and suppliers who have supported the businesses over the last eight weeks. "
In just under two months, the PwC team have completed deals preserving over 1,100 jobs across the country, but heavily concentrated in the West Midlands.
Robert Moran, partner at PwC leading the Caparo sales process, said:
“We are delighted to announce this latest transaction. Alongside those previously announced, it represents a successful outcome and continuity for a number of businesses which enjoy market leading positions. Our process to sell the Caparo businesses extended to over 350 interested parties, and we are delighted to transfer the businesses, assets and staff through to a new investor with significant experience and plans to invest further in the steel, engineering and vehicles sectors. To have preserved another 623 jobs across nine locations by means of this transaction is a success which repays the talent, skills and dedication shown across the businesses over recent weeks.
"The transactions to date have led to a total of 1,111 Caparo people being transferred and remaining in continued employment. We are delighted for the Caparo employees, who have shown incredible loyalty to the business, and fantastic support to the PwC team in working with us over a difficult eight week period to secure transactions which have preserved many longstanding Midlands businesses. We would like to thank them all, as well as their Union representatives, for this support.”
This latest deal preserves 623 jobs across nine locations comprised of the following: Business unit(s) Business / Assets Location Staff transferring
Clydesdale Jones, Caparo Modular Systems and Caparo Advanced Composites Business Willenhall 142
Caparo Aluminium Bridge Business Wednesbury 123
Caparo Vehicle Technologies Business Leamington 89
CMT Engineering made up of Tube fittings, Dynamics, Clamps and Insulation Business Cradley Heath 40
Caparo Precision Strip – JB&S Lees Business West Bromwich 170
Caparo Drawn Products and Fairbright Wire Business West Bromwich 29
Caparo Forging – Hartlepool Assets Hartlepool 1
Caparo Forging – Dudley Assets Dudley 6
Head office N/A Oldbury 23
Notes to editors:
1. Caparo Industries plc is a Midlands & 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.
2. PwC continues to trade part of the Caparo Precision Strip business, with 37 remaining employees, and continues to seek a buyer for the final remaining business for the Administrators to deal with.
3. A team of PwC Partners & Directors Earlier were appointed administrators over the following companies within the Caparo Industries group on 19 October:
(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