The programme to build three Fleet Solid Support ships for the Royal Fleet Auxiliary is facing early disruption after a cash shortage at Liberty Steel Dalzell raised concerns over the supply of plate steel, according to reporting by The Guardian.
The Dalzell plant in Motherwell had been expected to provide steel for the vessels, including the future RFA Resurgent, but is now facing an uncertain wait for raw materials due to continued financial pressure within Liberty Steel’s parent company, GFG Alliance.
Sir David Murray, the Scottish metals magnate, has called on the UK Government to intervene, arguing that ministers should apply pressure for Liberty Steel to relinquish control of the site. Murray has previously said he would be willing to step in and operate the business if ownership were transferred.
The latest difficulties underline the ongoing instability across parts of Sanjeev Gupta’s industrial group, which has faced sustained financial turmoil since the collapse of its key lender, Greensill Capital, in 2021. Gupta has since lost control of several businesses, including Liberty Speciality Steel UK in South Yorkshire, which was declared “hopelessly insolvent” last year.
Dalzell itself has not filed accounts for five years, with Gupta facing prosecution for failure to submit accounts, alongside a long-running Serious Fraud Office investigation into suspected fraud.
The Fleet Solid Support ships, each measuring 216 metres in length, are designed to carry ammunition, food and stores to sustain Royal Navy operations at sea. The vessels are being built in Belfast by Spanish state-owned shipbuilder Navantia, with the first ship, RFA Resurgent, currently scheduled for delivery in 2031.
UK Defence Journal reported last year that Dalzell was preparing to restart operations specifically to supply plate steel for naval shipbuilding, following confirmation from the Scottish Government that the site had secured work linked to the FSS programme.
At the time, Public Finance Minister Ivan McKee told the Scottish Parliament that GFG Alliance had a “credible plan” to restart production at Dalzell and that the plant had already secured a contract from Navantia to supply steel plate for ship construction, with further opportunities expected to follow. McKee said there were “no immediate risks” to Dalzell arising from court cases affecting other Liberty businesses in England, after the UK Government intervened in the insolvency of Liberty Speciality Steels. He described Dalzell as a strategic national asset and the UK’s only remaining plate mill.
Production at the Motherwell site was paused in August 2024, with staff placed on furlough under an agreement with trade unions. The Scottish Government said at the time it continued to work with GFG Alliance and the Community union to safeguard the future of the plant and return workers to site.
Trade union leaders have argued that with sufficient investment Dalzell could support both defence shipbuilding and offshore wind manufacturing, strengthening domestic supply chains and securing skilled industrial employment.
