Liberty Steel Dalzell, a plate mill in Motherwell, Scotland, is experiencing severe financial strain that threatens a major defense contract. The facility has an order to manufacture 34,000 tonnes of metal plate for the Royal Navy’s fleet solid support ships, which are scheduled to be constructed in Belfast by Spanish shipbuilder Navantia under a £1.6bn agreement. The first of three 216-metre vessels is planned for delivery in 2031.
The plant’s difficulties have intensified in recent weeks, with operational challenges including delayed worker payments and inability to meet pension contribution obligations. The government body responsible for electricity transmission, the National Energy System Operator, filed a winding up petition against the company last month over unpaid charges, though that debt has since been settled and the petition is expected to be withdrawn. The facility is owned by the Gupta Family Group, controlled by metals magnate Sanjeev Gupta, which has faced financial pressure following the 2021 collapse of its primary lender, Greensill Capital.
Dalzell is currently the only British mill capable of producing the specific plates required for the naval contract, but its output has been constrained for two years due to working capital shortages. Industry figures and labor unions have suggested that proper funding could enable an integrated British supply chain, with government-controlled British Steel facilities in Scunthorpe providing raw materials to Dalzell for processing. However, the longer production is delayed, the greater the likelihood that Navantia will source materials internationally. The shipbuilder has already indicated that the first vessel will be largely constructed in Spain due to readiness issues at the Belfast shipyard.
Union leaders have called for government intervention to secure the facility’s future, arguing that its loss would damage Scotland and the UK steel sector. The government stated it is closely monitoring the situation and encouraging Navantia to prioritize UK suppliers where feasible. The company’s representatives attributed operational challenges to elevated energy costs compared to international competitors and indicated ongoing efforts to secure additional commercial contracts.
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