In these days of recession and economic downturn, it is encouraging to be able to write about a steel-based company that seems to be going from strength to strength.
Caparo was established more than 40 years ago by Indian born British Industrialist the Rt. Hon. Lord Paul of Marylebone, and at present employs over 10,000 people in its 85 operational sites across Europe, North America and Asia. In the United Kingdom Caparo has nearly 2,400 employees and over 40 sites.
Lord Paul’s roots go back to the little Punjab town of Jalandhar in India where, in 1910, his father started by making steel buckets, tubs, trunks and agricultural implements, and had a small foundry at the back of the family home. Lord Paul and his brothers grew up surrounded by their father’s small business and succeeded him in his vision.
In 1968, already in the United Kingdom, Lord Paul took out a £5,000 loan and opened Natural Gas Tubes. The company, based in Huntington, Cambridgeshire, manufactured spiral weld tubes and achieved first year sales of £14,000. From this cornerstone, over the next four decades Caparo grew into a large multinational enterprise with interests mainly in sectors such as construction, automotive, aerospace, commercial vehicles, agriculture, marine, leisure, testing services, and oil, gas and energy; and growing aspirations for the defense, railway and orthopedic industries. Through its global manufacturing base at present the company deals directly with businesses in 50 over countries and indirectly with almost every part of the world.
Caparo in the UK
In the United Kingdom, Caparo delivers products and services to the construction industry through its two major UK divisions – Caparo Steel Products and Caparo Materials Engineering.
Caparo Steel Products Ltd. is one of the largest steel conversion businesses in the country. With over four decades of experience in the development, manufacture and distribution of steel products and solutions, it boasts an annual capacity of over 800,000 tonnes and a strong team of over 1,000 employees. With its unrivalled range of products such as structural steels, precision tubes, spirally welded tubes, special bar qualities, industrial wires, cold rolled steel strip, spring steel strip and specialist fasteners, Caparo Steel Products satisfies the demands of many sectors, including the construction industry.
Caparo Materials Engineering is a new division in the United Kingdom, formed in 2010 through the merger of the previous Engineering and Vehicle Products businesses. The 16 companies and their trading subsidiaries are further sub-divided into three business groupings, namely Caparo Engineering Products & Services, Caparo Foundry and Forging Europe, and Caparo Vehicle Products. The Caparo Materials Engineering companies specialise in the design and manufacture of highly engineered niche products and services delivered to a range of industries such as aerospace, nuclear, scientific, marine, automotive, construction and other markets.
Caparo and the Construction Industry
As one of the major manufacturers of steel products in the United Kingdom, Caparo provides a large number of components to the construction industry, aimed primarily at the commercial customer. Caparo Steel Products supply steel products such as conduit tubing, aluminium fittings, sprinkler pipe for fire and sprinkler systems, hand rails, ladders, hollow structural sections, conveyance tube and spirally welded tubes, to mention just a few. Sustainable, 100% recyclable and cost effective, steel offers a number of structural benefits to new buildings, and its off-site fabrication increases the speed of construction, saving time and money.
Important manufacturers of tube fittings for the heating and ventilation installation markets in both the UK and abroad, CMT Tube Fittings, a part of the Caparo Materials Engineering Division, supply their products to both heating engineers and mechanical service providers. Caparo Tubes Tredegar specialise in the manufacture of spiral tube for piling, used in foundations in building and pontoon construction. Caparo Precision Strip, on the other hand, are world recognised experts in precision strip for hand and machine metal and wood cutting tools, used in both the DIY and professional construction market sectors. Caparo Testing Technologies deliver a range of materials testing, non-destructive testing and other specialist services to the construction sector. Hub Le Bas, a leading distributor and stockist of precision steel tube, cater to the requirements of customers of all sizes throughout the UK with regards to steel tubes of all sizes, architectural profiles and a selection of shopfitting tubular products.
Caparo’s Chief Financial Director David Dancaster says, “Our steel conversion companies make us one of the largest processors in the country. We have created many opportunities in what is a pan-European market and ship a large proportion of our output to Continental Europe. While construction is not a dominant sector, it is nevertheless a significant one for us; much of what we supply is to a second or third tier supplier.
Caparo’s merchant bar plant in Scunthorpe, which is a joint venture between Caparo and Tata Steel, originally British Steel, has the capacity to produce around 400,000t/y of light and medium sections. More than half of this is being exported into Europe. Some years ago, the German steel industry decided to move to more higher added value products. As a result, Caparo has now become a core supplier of merchant bar products to Germany and can now ship steel more cheaply to the Ruhr within 24 hours than it can to South Wales! The company has grown into a wide range of markets in the UK and Europe and has recently introduced a lightweight I-beam that is now replacing imports in the UK market.
David continues, “We are now seeing a reduction in demand from the construction industry, due to the recession. Most of what we produce is aimed at the commercial rather than the domestic customer. In tubing our lighter grades go into applications such as office furniture, garden equipment and children’s playframes. An important product for the construction industry is spiral welded tube which is used for piling casings. While demand for structural tubing has eased as the commercial building industry slows we are continuing to see an appetite for tube in street furniture and lighting.”
Caparo, through its Barton Brand, also produces conduit tubing, for which there is a growing demand in the Middle East and, consequently, has set up a major distributor outlet in Dubai.
Looking Ahead and Wider Afield
Caparo’s Chief Executive Officer the Hon. Angad Paul shares his vision for the future of the construction and the UK manufacturing industry. “I believe that we have a lot more to play for in manufacturing and, if the UK is to have a genuine manufacturing future, it will be as a result of our strength. As far as the construction industry is concerned, it must consider the use of advanced materials. We have looked, for example, at bridge construction using advanced materials and we believe that this could be the way to go.”
“In the USA, we produce a large amount of hollow sections for the construction industry but hollow tubes are heavy to move around. If you look at the SIPS structures used in cars, they use special high strength, low weight alloys and we could transfer this approach into construction.”
“We are ready to do whatever we can to help the construction industry, both in the UK and globally. The question still remains through – how do we change how we build, what we build and how do we finance it?”
For further information please telephone 0207 486 1417 or visit http://www.caparo.com
