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More than 1,000 jobs have been saved at the steel firm Caparo.
In October it was announced that more than 300 jobs would be lost at a number of sites across the West Midlands.
Ninder Johal, President of the Black Country Chamber of Commerce, said the news was "great news for the supply chain too".
Over 1k jobs saved at Caparo - great news for supply chain too...future looks great for the region despite fragile economy @bcccmembers
It is as yet unclear how many of jobs saved will be in the Midlands.
Almost 80 jobs have been saved at a division of the Black Country-based steel group Caparo, after a deal with a Spanish company.Read the full story ›
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Hundreds of people may have lost their jobs this evening after the collapse of the steel company Caparo.
It has factories in the Black Country and in Leamington Spa.
Eighteen hundred people work for the group but the administrators are cautious over how many of these jobs might go.
Our Business Correspondent, Mark Gough, reports:
Labour has urged the Government to take immediate action to help the steel industry following the news that Caparo Industries is likely to go into administration.
Angela Eagle, the shadow secretary of state for business, innovation and skills, said the industry was "on its knees" and that the Government "seems content to let the industry fail".
She said: “My thoughts are with the 1,700 employees of Caparo who are facing uncertainty over their future.
“Rather than setting up more talking shops the Government should be taking action to tackle higher energy prices, they should be providing export and procurement support and be looking at what temporary measures could help the industry, including looking again at business rates.
“With the Chinese President in the UK this week, I hope the Government will raise the issue of anti-competitive dumping which is driving down steel prices.”
Failure to help threatened steel firm Caparo could create a "domino effect" across the whole industry, the Unite union has warned.
The union described the news as another "hammer blow" to livelihoods and vowed to do everything in its power to protect jobs and skills.
Unite's Tony Burke called on the Government to step in to help protect jobs.
He said: “Government ministers need to ask themselves. How many more steel firms need to go to the wall before they step in and support the UK’s steel industry?
“Failure to act urgently could lead to a ‘domino effect’ taking hold across the industry, leading to the loss of yet more skilled jobs as firms buckle under a combination of steel ‘dumping’ and high energy costs."