More than 1,500 jobs in the West Midlands hang in the balance after engineering group Caparo Industries collapsed.
The company, which comprises 13 firms in the West Midlands, among others, confirmed PwC as administrator, in a major blow to the region.
However, a spokesperson for PwC said fears that all jobs would be immediately lost were unfounded, and a clearer view would emerge in the coming days.
Matt Hammond, lead administrator and partner at PwC, said it remained business as usual for staff as a review gets underway.
He added: “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.”
The businesses which have gone into administration are Caparo Industries, 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, Caparo Modular Systems, Caparo Advanced Composites, Caparo Accles & Pollock, Caparo Tube Components and Caparo Atlas Fastenings.
The workforce of more than 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.