Book contents
- Frontmatter
- Contents
- List of Figures and Tables
- Abbreviations used in Notes
- Preface
- Introduction
- Part One Nineteenth-century Developments
- Part Two Amalgamation, Diversification and Rationalisation, 1903–39
- 8 Multi-plant Operations and Managerial Difficulties, 1900–14
- 9 Problems of Commercial Integration: Fairfield's and Coventry Ordnance Works
- 10 Birkenhead Operations from 1903 to World War I
- 11 World War I and the Post-war Boom: The Impact on Steel of High Activity, Plant Expansion and New Technology
- 12 Shipbuilding, 1914–29
- 13 Economic Depression and the Steel Trade in the 1920s
- 14 Cammell Laird Rolling Stock
- 15 Amalgamation and Rationalisation: The Formation and Early Development of the ESC
- 16 Economic Efficiency and Social Costs: The Closure of the Penistone Works
- 17 Reconstruction and Recovery at the ESC, 1932–39
- 18 Shipbuilding in the Great Depression and the 1930s
- Part Three Culmination and Decline, 1940–93
- Bibliography
- Index
17 - Reconstruction and Recovery at the ESC, 1932–39
from Part Two - Amalgamation, Diversification and Rationalisation, 1903–39
- Frontmatter
- Contents
- List of Figures and Tables
- Abbreviations used in Notes
- Preface
- Introduction
- Part One Nineteenth-century Developments
- Part Two Amalgamation, Diversification and Rationalisation, 1903–39
- 8 Multi-plant Operations and Managerial Difficulties, 1900–14
- 9 Problems of Commercial Integration: Fairfield's and Coventry Ordnance Works
- 10 Birkenhead Operations from 1903 to World War I
- 11 World War I and the Post-war Boom: The Impact on Steel of High Activity, Plant Expansion and New Technology
- 12 Shipbuilding, 1914–29
- 13 Economic Depression and the Steel Trade in the 1920s
- 14 Cammell Laird Rolling Stock
- 15 Amalgamation and Rationalisation: The Formation and Early Development of the ESC
- 16 Economic Efficiency and Social Costs: The Closure of the Penistone Works
- 17 Reconstruction and Recovery at the ESC, 1932–39
- 18 Shipbuilding in the Great Depression and the 1930s
- Part Three Culmination and Decline, 1940–93
- Bibliography
- Index
Summary
Rationalisation at the ESC was made more essential but more difficult because it coincided with depression of unprecedented severity. The parent companies were in deep distress. The full flavour of their despair was conveyed in an invitation to visit their works sent in July 1931 to Lieutenant General J. R. E. Charles by the director, Noel Birch:
We have a very difficult time ahead of us to live at all for the next year or two, and we must sell every mortal thing we can … unless you come soon I do not know what there will be left for you to see if things go on as they are at present.
Early in 1932 the ESC petitioned in the Royal Courts of Justice for permission to reduce its capital. It had closed works standing in its books at £2.3 million but by then worth only £156,000. The basis of the amalgamation in March 1929 had been ‘altogether too hopeful’. Approval was obtained to reduce capital from £8,234,889 to £2,862,069. Within this difficult commercial environment, the concentration and improvement of operations were gradually achieved. By 1935 seven main works in Sheffield and Manchester had been reduced to four (Table 41); rationalisation occurred at departmental level.
Charles Craven, of Vickers–Armstrong and Vickers, became managing director of the ESC in spring 1932 and in July was made deputy chairman. He was a remarkable leader, with technical knowledge, an understanding of men and an outstanding capacity for work. Plant closure went on.
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- Information
- Steel, Ships and MenCammell Laird, 1824-1993, pp. 243 - 250Publisher: Liverpool University PressPrint publication year: 1998