Troubled Scottish steel supplier raises questions over Royal Navy contracts
Summary
Liberty Steel Dalzell in Motherwell is facing financial difficulties that have raised uncertainty about its order to supply 34,000 tonnes of steel plate for three Royal Navy support ships. The British government says it is monitoring the plant, while unions have urged it to protect the site and Navantia has said it will use UK suppliers where possible.Key Facts
- Liberty Steel Dalzell has struggled to pay bills and workers in recent weeks.
- The National Energy System Operator filed a winding-up petition against the company last month over a debt believed to involve electricity transmission charges.
- The debt is understood to have been repaid, and the petition is expected to be withdrawn.
- Dalzell has an order to produce 34,000 tonnes of plate for the Royal Navy’s fleet solid support ships, which Navantia is contracted to build in Belfast.
- Dalzell is the only plant in Britain capable of producing the plates required, but production has been limited for two years because of a shortage of working capital.
- Navantia has said the first ship will be built largely in Spain because the Harland & Wolff shipyard in Belfast is not yet ready.
- Dalzell recently produced some plate using steel reportedly sourced from Kazakhstan, but that steel is not suitable for the defence contract.
- The government says it is closely monitoring the plant, and Navantia UK says it follows a policy of using local suppliers where possible.
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