When Hayes Lemmerz,the biggest maker of steel and aluminium wheels for cars, emerged from bankruptcy in 2003, it hoped for abright future as a stronger and more competitive company.

But it did not foresee the steel crisis that would ensue as demand from China's expanding economy pushed prices to record levels. Although prices have since dropped, hot-rolled coil steel is still trading at about $650-$700 (£350-£376) a tonne, double its levels of late 2003.