Key facts
- Dalzell holds an order for 34,000 tonnes of metal plate for the navy's fleet solid support ships.
- The mill is the only one in Britain able to produce the plates needed, but output has been limited for two years by working capital shortages.
- The National Energy System Operator filed a winding up petition against the company last month, per public court records.
- Aviva said it was currently unable to accept further pension contributions into the workplace pension plans for members of this scheme.
- A GFG spokesperson said Dalzell's UK slab supplier has indicated capacity from early next year.
- Community union general secretary Alasdair McDiarmid called for a viable plan for Dalzell's long-term future.
The Royal Navy is facing questions over whether three new warships will be built with British steel as its Scottish supplier faces deepening financial difficulties, according to a report published November 15, 2026. Liberty Steel Dalzell, a plate mill in Motherwell, has struggled to pay its bills and workers in recent weeks, several people with knowledge of operations said. The government said it was closely monitoring the situation at the plant.
The National Energy System Operator, the government body in charge of keeping the lights on, filed a winding up petition against the company last month, according to public court records. It is understood that its debt, thought to be for electricity transmission charges, has now been repaid and the petition will be withdrawn. A Neso spokesperson said the body could not comment on specific debt recovery cases.
The Dalzell plant has an order to make 34,000 tonnes of metal plate to build the navy's fleet solid support ships. They are due to be built in Belfast by the Spanish state-owned shipbuilder Navantia in a £1.6bn contract. The first of the 216-metre ships, designed to carry munitions, food and other supplies for the navy's Royal Fleet Auxiliary, is planned to be delivered in 2031. Navantia said in September it would build the first ship largely in Spain because the Harland & Wolff shipyard was not yet ready, in comments to the Financial Times.
The financial struggles of Liberty Steel Dalzell and its owner, the Gupta Family Group Alliance controlled by the metals tycoon Sanjeev Gupta, have cast doubts on whether the plates will ever be made. The Dalzell mill is the only one in Britain capable of producing the plates needed, but its output has been limited for two years because of shortages in working capital. Several people in the industry and unions believe Dalzell could be part of an integrated British supply chain if it had working capital.
Workers' pay packets have been late twice in recent months, including at the end of October. Staff are also concerned because the pension provider Aviva said it was currently unable to accept further pension contributions into the workplace pension plans for members of this scheme. A GFG spokesperson said the company was engaging with Aviva and the Pensions Regulator to fix this as quickly as possible. It is also understood that the company providing security to the Dalzell site walked away over the weekend after its bills were unpaid.
A government spokesperson said: "This has been a difficult situation for the staff and local community supporting Liberty Dalzell. We want to see the company operational once more, and are closely monitoring the situation." The spokesperson added that Navantia UK has a local first policy for suppliers and that ministers have encouraged it to use UK suppliers, including for steel, where possible.
A GFG spokesperson said: "Like the rest of the UK steel industry, Dalzell faces tough operating conditions with energy costs far higher than the prices its international competitors pay. Despite that the plant has restarted and GFG are pursuing new commercial deals to bring more volume through the mill. The Navantia contract remains in place and Dalzell's UK slab supplier has indicated capacity from early next year."