UK rules out funding Scottish steel for new support ships

The Ministry of Defence has confirmed it will not directly fund the supply of steel slabs from British Steel Scunthorpe plant to Liberty Steel Dalzell works for use on the new Fleet Solid Support ships, placing responsibility for sourcing materials firmly with the prime contractor.

In a written answer to Liberal Democrat MP James MacCleary, Defence Minister Luke Pollard said that MOD funding for the Fleet Solid Support programme is provided through a fixed-price contract with Navantia UK, which is responsible for managing its own supply chain. He said that “as the prime contractor, it is NUK’s responsibility to deliver the FSS ships under the terms of the contract, which includes the purchase of materials and managing their supply chains accordingly.”

Pollard added that decisions over steel sourcing are therefore commercial matters for Navantia UK, noting that the company’s objective is “to maximise UK steel content wherever it is technically and commercially feasible, while protecting the delivery schedule.”

The response follows ongoing scrutiny of the role of Liberty Steel’s Dalzell plate mill in the programme. Dalzell, the UK’s only remaining plate mill, had been expected to contribute steel for the three Fleet Solid Support vessels being built for the Royal Fleet Auxiliary, including the first ship, RFA Resurgent, which is currently planned for delivery in 2031. However, concerns have persisted over the plant’s access to raw materials amid financial instability within Liberty Steel’s parent group, GFG Alliance.

In earlier answers to Parliament, the MOD said its assessment of the impact of Dalzell’s raw material shortages on the FSS programme was limited and judged to be low risk. Pollard previously told MPs that “the current assessment of the potential impact of the raw material shortage at Liberty Steel’s Dalzell plant, on the construction of the three Fleet Solid Support ships, is deemed low.” He also stressed on that occasion that steel procurement sits with Navantia UK rather than the department itself.

Dalzell had previously been preparing to restart production in anticipation of naval shipbuilding work, following assurances from the Scottish Government that it had secured orders linked to the FSS programme. Those plans were later cast into doubt after reports of renewed cash-flow pressures affecting the plant’s ability to secure slab steel.