Troubled Scottish steel supplier raises questions over Royal Navy contracts

Liberty Steel Dalzell, a steel supplier in Scotland, has been struggling to pay its bills, raising concerns over the potential for the Royal Navy to receive non-British-made warships. The company, owned by the Gupta Family Group, secured an order to produce 34,000 tonnes of metal plate to build three Royal Navy fleet support ships, slated for delivery in 2031.

These ships, built in Belfast by the Spanish shipbuilder Navantia, could have been made with British steel if Liberty Steel Dalzell had sufficient working capital. However, the plant's operations have been hampered for two years due to financial difficulties. The National Energy System Operator recently filed a winding up petition against the company over electricity transmission charges, which was later repaid and withdrawn.

Several workers have gone weeks without pay, and the pension provider has halted contributions due to the financial turmoil. Despite these challenges, GFG Alliance remains committed to the contract and believes the plant could play a key role in an integrated British supply chain. The government is closely monitoring the situation and the Navantia contract mandates the use of local suppliers where possible.