Caparo Industries, the flagship company of Britain’s India-born peer Lord Swraj Paul, is the latest steel manufacturer to succumb to the crisis that has engulfed the steel sector, several British media have reported.
According to the reports, the company is set to enter administration and shed 1,800 jobs amid an industry-wide slump that has already seen the loss of thousands of jobs in recent weeks.
The crisis in the steel industry is attributed to cheap Chinese imports, lower prices and a strong pound. “This is a real blow to U.K. manufacturing,” Alex Flynn of the Unite union was quoted as saying by the Financial Times.
“We need action now. Ministers talk about rebalancing the economy, but in the end do they want Britain to continue making things?” The issue of China dumping cheap steel in the British market is likely to come up in the talks between the British government and Chinese President Xi Jinping who is visiting the United Kingdom on a state visit Tuesday.
