The good name enjoyed by many of firms that make up Caparo Industries offers hope thousands of Midland jobs will be saved, according to West Bromwich West Labour MP Adrian Bailey .

More than 1,700 jobs, most of which are in the Black Country, remain in the balance after the engineering group, which comprises 13 firms in the region among others, collapsed with PwC appointed as administrator.

The firm, which is owned by Labour peer Lord Paul of Marylebone , produces a number of steel products. It has struggled after seeing the price of steel fall with Chinese imports flooding the market.

Mr Bailey attended a rally organised by the GMB Union outside a number of Caparo subsidiaries in Rood End Road, Oldbury, on Friday October 23.

The rally came after calls from Unite the Union for the Government to step in to help resolve the crisis .

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Mr Bailey said: “I understand a lot of Caparo companies have got full order books and given that situation it seems highly unlikely there wouldn’t be demand.

“I am optimistic a considerable proportion of the group can be saved.

“Certainly from my own knowledge of the other companies involved in the motor supply industry, Caparo has a good name and I would reasonably expect there to be a lot of interest from companies engaged in that area.”

Mr Bailey said he hoped a debate in Parliament on the crisis in the steel industry, taking place on Wednesday October 28, would also offer the prospect of hope for Caparo workers should jobs be lost.

He said: “Given the fact the Minister has put in place a much-trumpeted package of measures to help Redcar, we would be looking for some additional help locally in the event of unemployment happening.

“We would expect some government measures to alleviate the extra problems any such closure would cause.

“At he moment, fingers crossed, we may be able to save it - or at least a considerable proportion of the business.

“But in the light of present problems in the steel industry there are a number of measures the Government needs to take to mitigate it - in the event of the company going down - in order to provide support to the communities affected.

“A lot of those areas have been heavily dependent on steel for some time.”

Mr Bailey hailed the GMB rally as a success and demonstrated support in the local community was strong.

He added: “It focused more publicity on the issues around Caparo and the steel industry in general. It also emerged that quite a lot of he neighbouring community are hugely supportive.

“Psychologically it was a boost for them, though I don’t think we learned any more. PwC are keeping things pretty close to their chest.”

Russell Farrington, GMB organiser, said “The majority of the jobs at Caparo are highly skilled manufacturing jobs based here in Sandwell making products for Honda, Ford, Rolls Royce and British Aerospace.

“GMB are obviously concerned about the impact on our members and have been working to support them at this difficult time.

“The steel industry has been the cornerstone of the industrial life of the Black Country.”

“If we don’t do something soon, this industry will be completely destroyed. Around 1,500 employees of Caparo in this region alone are facing the prospect of losing their jobs.”

Caparo’s 13 operations in the Midlands are located in Oldbury, West Bromwich, Wednesbury, Willenhall, Cradley Heath and Leamington Spa.