PwC said its joint adminstrators team will be rapidly taking control of a total of 16 of the companies in the group. The firm emphasised that no job losses have been announced at this point.

Caparo Industries plc is a Midlands and London headquartered diversified industrial group. CIP comprises approximately 20 individual business and its activities include the forging and pressing of metal products for aerospace, automotive and other industries. It also produces fastenings, wire, tubes and other accessories.

In a statement, PwC said: ‘Employees across these entities of the Caparo Industries group totalling just over 1,700, will be briefed on the impact of administration at the businesses.  Staff are attending work as normal and will be paid as normal, so in these respects it is business as usual while the administrators' review gets underway’.

The statement went on to say the joint administrators will also be working closely with the senior management team at Caparo Industries group to rapidly contact key customers and suppliers with the objective of stabilising trading of the businesses while they assess opportunities to restructure or sell the businesses and their assets.

Matt Hammond, lead administrator and partner at PwC, said: ‘This is a significant business with a wide range of interests across steel, engineering, vehicles products and technologies. Its scale and reach into significant customers and its importance to suppliers cannot be understated. We will be rapidly assessing all options for the businesses through this week and beyond.

‘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.’

CIP is part of a global network of businesses under the Caparo name, with operations in China, India and the US. In addition to steel, Caparo’s global business is also involved in product development, materials testing services, hotels, media, furniture and interior design, financial services, energy and private equity investment.

PwC stated that specifically three subsidiaries of Caparo Industries plc are not in administration, these are Caparo Merchant Bar and Caparo India (both UK entities) and Bomet SA (a Polish business) which continue to operate normally.

PwC has taken over administration of the following companies in the group: Caparo Industries plc;  Caparo Engineering; Caparo Steel Products; Caparo Vehicle Products; GW 957; Bridge Aluminium; Material Measurements;  Caparo Precision Tubes;  Caparo Precision Strip; Caparo Vehicle Technologies ; Caparo Tube Components Ltd;  Caparo Modular Systems Ltd;  Caparo Advanced Composites Ltd; Caparo Accles & Pollock Ltd; Caparo Tube Components 2 Ltd; and  Caparo Atlas Fastenings Ltd.

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