"Liberty Steel Dalzell in Scotland has been unable to start production in earnest because there is no cashflow to buy slab, despite an order to supply 34,000 tonnes of metal plates to build fleet solid support (FSS) ships for the navy, according to two sources with knowledge of the situation. Sir David Murray, a Scottish metals magnate, said the UK government should step in, as it has done with other steelworks, to pressure Liberty Steel to pass over control of the plant."
"Gupta has lost of control of several parts of his GFG Alliance empire since the 2021 collapse of his key lender, Greensill Capital. Gupta in August lost control over Speciality Steel UK in South Yorkshire because it was hopelessly insolvent. The Dalzell mill has not filed accounts for five years, and Gupta is facing prosecution over failure to file accounts."
"The 216-metre FSS ships, designed to carry munitions, food and other supplies for the navy's Royal Fleet Auxiliary, are due to be built in Belfast by the Spanish state-owned shipbuilder Navantia. The first ship, RFA Resurgent, is expected to be delivered in 2031. The FSS ship orders were meant to secure employment in the UK, and to rely as much as possible on UK suppliers. Navantia took over the Harland & Wolff site in Belfast last year, after its British owner collapsed."
Liberty Steel Dalzell cannot begin full production because of a lack of cashflow to buy slab, despite an order for 34,000 tonnes of plates for fleet solid support ships. The shortfall prevents purchases of slabs from British Steel and has left workers paid at 80% of salaries. Sir David Murray urged UK government intervention and offered to run the plant. The cash shortage reflects wider financial problems at businesses linked to Sanjeev Gupta after the 2021 Greensill Capital collapse. The Dalzell mill has not filed accounts for five years and faces related legal scrutiny. Navantia will build the 216-metre FSS ships in Belfast, with the first due in 2031.
Read at www.theguardian.com
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