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Compaq, which receives 75percentt of its parts from overseas, was forced to slow manufacturing.
Koushik Chatterjee, group executive director, said: "These are unprecedented times for the steel industry globally with multiple risks including global economic uncertainty, slow manufacturing growth and currency volatility which continues to present significant challenges to the business.
Slow manufacturing numbers were a trigger for Monday's China-inspired falls in stock markets around the globe, but the worries were also fuelled by memories of Beijing's cack-handed attempts to prop up share prices last summer.
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Slowing manufacturing output could also weigh on prices.
But on Monday, the Confederation of British Industry reported slowing manufacturing output and mothballed investment.
The austerity efforts so far have backfired by slowing manufacturing and consumer sales, thus lowering tax receipts.
The ONS figures on factory output reflected the trend of slowing manufacturing growth indicated by the Markit/CIPS manufacturing PMI last week.
Investors have also been troubled by reports in the last month of weaker hiring, slower manufacturing and a drop in factory orders.
[C4.] Growth in Manufacturing Slows Manufacturing expanded in June at the slowest pace in 17 months, according to the National Association of Purchasing Management, which said its monthly factory index fell to 51.8 in June from 53.2 in May.
FRANKFURT — A main indicator of business sentiment in Europe unexpectedly fell deeper toward recession territory Thursday, compounding concerns about the global recovery after signs of slowing manufacturing in China.
Two weak economic reports -- one showing the slowest manufacturing pace in nine years and one indicating a sharp decline in consumer confidence -- suggested that further rate cuts were likely.
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