Portfolio Question Time – in the Scottish Parliament at on 3 September 2025.
Willie Rennie
Liberal Democrat
To ask the Scottish Government whether it will provide an update on its discussions with GFG Alliance, Liberty Steel and Alvance British Aluminium regarding the companies’ operations in Scotland. (S6O-04872)
Ivan McKee
Scottish National Party
The Scottish Government is in regular contact with management at Alvance British Aluminium, Liberty Steel Dalzell and the wider GFG Alliance.
The Lochaber businesses are performing well, employing more than 200 people and making significant contributions to both the local and Scottish economies. GFG remains committed to the future of the Dalzell plant and has firm plans to restart operations in the near future, after securing a contract for 40 kilotonnes of plate for maritime use.
I will provide a statement to Parliament next week to set out further details on the Scottish assets and our discussions with GFG on their future.
Willie Rennie
Liberal Democrat
There will be scepticism in Lochaber and Lanarkshire, as we have had so many false dawns before. At the smelter, we were promised a wheel-making plant, 2,000 jobs and a billet plant, but none of that has happened. Indeed, last month, it was on the verge of being struck off Companies House. The workers at Dalzell have been sitting at home for months, as the company cannot afford to buy the materials to fulfil any orders. There has also been the forced liquidation of the speciality steels business in the UK.
If things are going so well, has the company indicated when it will pay back the £7 million loan to the Scottish Government? How long will the Scottish Government give the GFG Alliance to deliver before it steps in?
Ivan McKee
Scottish National Party
We are committed to continuing to work with the owners. It is worth recognising that, after many years, the two businesses in Lochaber and Dalzell are still operating and continue to maintain employment in those locations, which was far from certain previously. What the Scottish Government has done in working with the owners to keep those plants employing people locally is not insignificant and needs to be recognised. We will continue to work with the owners, and we have significant contingency plans in place for any eventualities, should there be any change in circumstances.
As I have said, I will make a statement on the matter next week, when there will be a further opportunity to give more information.
David Torrance
Scottish National Party
News that the Labour Government has taken control of Liberty Steel in Yorkshire was another kick in the teeth for the Scottish workers at Grangemouth. Does the Minister agree that it would appear that Westminster’s support for industrial assets and regional economies depends on which side of the border they are found?
Annabelle Ewing
Scottish National Party
I invite the Minister to respond, to the extent that that falls within the broad reach of the question lodged by Mr Rennie.
Ivan McKee
Scottish National Party
During the General Election campaign last year, the Labour Party made bold and far-reaching commitments on intervening to support Grangemouth’s transition in the near term. So far, unfortunately, those commitments have not materialised in the way that we had all hoped.
The UK Government’s commitment to deploy £200 million from the National Wealth Fund in Grangemouth in the future is to be welcomed, but we need to see the sort of at-scale Intervention that we have seen in other parts of the UK—and now, if we are to avert further industrial unemployment loss across the industrial cluster.
Paul Sweeney
Labour
I am sure that the Minister will welcome the fantastic news on Sunday that Scotland—by which I mean Glasgow—has won the biggest shipbuilding export order in this country’s history, with five type 26 frigates going to Norway. However, the frustration is that, as it currently stands, no Scottish steel plate will be able to be supplied to that programme unless we can get Dalzell back up and running. Will the minister give an assurance that he will do all that he can to get it back up and running, so that we can get steel plate from Scotland into those fantastic Scottish frigates?
Ivan McKee
Scottish National Party
I give that assurance. As I have said, we have been working extensively with GFG on the potential for new orders. I have also indicated that there were maritime orders in the pipeline, and we will be able to give more information on that in the near future.
We will continue to work with the owners to look for other opportunities to get the plant back up and running, but it is worth recognising that it is only through the work of the Scottish Government and Scottish Enterprise that the plant is still capable of fulfilling those orders, as it has been supported through this period of time.
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