The Scottish Government has confirmed that Liberty Steel Dalzell is preparing to restart operations to supply plate steel for naval warship construction, while trade union leaders are calling for significant investment to position the site as a world-leading producer of plate steel for the offshore wind industry.
Dalzell, located in Motherwell, is currently the UK’s only plate mill. A new report from the Community trade union argues that with the right investment, the plant could supply both defence and renewable energy sectors, strengthening domestic supply chains and securing long-term skilled employment.
Public Finance Minister Ivan McKee told the Scottish Parliament that GFG Alliance, which owns Dalzell and the Lochaber aluminium smelter in Fort William, is “working hard to support Lochaber’s growth and has a credible plan for restarting operations at Dalzell in the coming weeks.” He confirmed that the site has secured a contract from Navantia to supply steel plate for naval shipbuilding, with opportunities to bid for further work.
McKee said there are “no immediate risks to Lochaber and Dalzell from the court cases in England,” following the UK Government’s intervention in the insolvency of Liberty Speciality Steels. He added that both sites remain key industrial assets for Scotland, with Lochaber continuing to perform strongly, producing more than 300,000 tonnes of aluminium and generating over £800 million in turnover since 2017.
The minister told MSPs that “our intervention has sustained the business for almost a decade,” emphasising that the Scottish Government’s guarantee for Lochaber remains fully secured by assets including the smelter, hydropower plant and surrounding landholdings.
No public money has been spent under the guarantee.
Dalzell has been idle since August 2024, when production was paused and staff were placed on furlough under an agreement with trade unions. McKee said the Scottish Government continues to work with GFG and the Community union to safeguard the site’s future. “We want to see the plant back up and running and to see people back at work,” he told Parliament.
McKee also said the Scottish Government is engaging with UK ministers on energy pricing and the allocation of the £2.5 billion UK steel support fund, pressing for “an equal share for Scottish plants.” He described Dalzell as both an economic and strategic asset, capable of supplying vital materials to shipbuilding and renewable energy projects.
“We took steps to retain these historic businesses and ensure that Scotland preserves the ability to produce aluminium and steel,” McKee said. “Lochaber continues to perform well and be a major employer in Fort William, and Dalzell has plans for a restart that will see it deliver steel plate for shipbuilding and play its part in powering the clean energy transition.”
