Dalzell steel shortage judged low risk to FSS ship build

The Ministry of Defence has said the current shortage of raw materials at Liberty Steel’s Dalzell plant is assessed as posing a low risk to the construction of the Royal Navy’s future Fleet Solid Support ships.

In a written answer to Conservative MP Ben Obese-Jecty, Defence Minister Luke Pollard said that the department’s assessment of the situation was limited in scope, stating 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 (FSS) ships for the Royal Fleet Auxiliary, is deemed low.”

The response follows earlier concerns over the Motherwell-based plant’s ability to supply plate steel for the programme amid ongoing financial instability within Liberty Steel’s parent company, GFG Alliance. Dalzell had been expected to contribute steel for the three 216 metre vessels, including the first ship, RFA Resurgent, which is currently planned for delivery in 2031.

Pollard’s answer emphasised that responsibility for steel procurement does not sit directly with the Ministry of Defence. According to the minister, “the sourcing of steel for the FSS programme is a matter for the prime contractor, Navantia UK.” He added that the company’s objective is “to maximise UK steel content wherever it is technically and commercially feasible, while protecting the delivery schedule.”

The statement reflects the contractual structure of the programme, under which Spanish state-owned shipbuilder Navantia is responsible for supply chain decisions while operating through its UK subsidiary. Ministers have previously stressed that domestic steel use is encouraged but not mandated where it could place cost or timelines at risk.

UK Defence Journal previously reported that Dalzell was preparing to restart production specifically to support naval shipbuilding, after assurances from the Scottish Government that the site had secured work linked to the FSS programme. That position was later thrown into doubt after reports of renewed cash flow problems affecting the plant’s access to raw materials. Dalzell remains the UK’s only remaining plate mill and has been described by Scottish ministers and trade unions as a strategic national asset.