The impact of the recent cyber attack on automotive manufacturer Jaguar Land Rover (JLR) is rippling through the steel supply chain, with material deliveries halted due to the pause in production at various sites, Kallanish learns from industry sources.
JLR confirmed the cyber incident in a statement on 2 September, with the attack believed to have started on 31 August. Production at various sites in the UK has been halted, as well as at some other plants globally.
The company had previously announced a production halt until 24 September, which it said would give “clarity for the coming week as we build the timeline for the phased restart of our operations”.
Since then, a further extension of the production suspension has been announced until 1 October. However, on 25 September, the firm said some sections of its “digital real estate” were now running, and was working to clear its payments backlog. This is in addition to its global parts distribution centre.
One steel supplier says the situation was a “nightmare” for JLR, adding that the supply chain had “come to a grinding halt”.
“We’ve bought and processed material, ready to go, which is bespoke, and it’s sat there gathering dust and sat on our order books,” they add.
The specialised nature of the automotive products means there will be few other buyers for the material, if any.
One supplier notes it usually ships thousands of tonnes per month of steel products to the automotive sector, including JLR. There are likely to be challenges even once production has restarted. “It depends how long the delay goes on but there will be pressure on the supply chain once they are back on,” the supplier notes.
JLR’s UK production stood at 17,273 units for the first quarter of its 2026 fiscal year, ended June 2025.
In recent days, UK business secretary Peter Kyle and industry minister Chris McDonald have visited JLR to meet with supply chain businesses.
A government statement says it is in daily contact with JLR and cyber experts to listen to concerns and see what support can be provided to get production back online. It adds that during these discussions, both ministers acknowledged the severity of the situation, which is impacting a key sector that supports thousands of skilled jobs.
“Getting JLR back online as soon as possible is my top priority, providing much needed certainty to workers and suppliers,” says Kyle.
He adds government is doing “everything we can to minimise the impact of this incident”.
Mike Hawes, SMMT chief executive, notes: “The cyber attack on JLR has had a massive impact on its operations and it is evident that they are using every possible measure to return to full operations as quickly as possible. The industry is resilient, but the impacts on the supply chain and wider industry on which it depends are severe and of indeterminate duration.”
“SMMT continues to work with JLR, government and suppliers to identify what additional supportive measures may be needed by this crucial sector of the economy,” he adds.
Carrie Bone UK
