Lochaber Smelter company facing compulsory strike-off notice after failing to submit accounts for almost three years

The Lochaber smelter has been at the centre of political controversy.

One of the companies at the Lochaber smelter is facing a compulsory strike-off notice from Companies House after it failed to submit accounts since December 2020.

SIMEC Lochaber Hydropower Ltd, which runs the hydropower station at the site near Fort William, received the first notice earlier this month.

Scottish ministers have a vested interest in the company’s continued operation, as they hold two charges yet to be satisfied and are considered a person with significant control.

Employees working at the UK’s only remaining aluminium smelter, the Liberty British Aluminium factory in Lochaber, Scotland

Sanjeev Gupta, the tycoon behind the GFG Alliance conglomerate, is the sole director.

Ministers backed Mr Gupta’s purchase of the smelter by guaranteeing power purchases from the hydroplant nearby in a deal worth £586 million, with the SNP receiving promises of additional investment and jobs from the deal.

The deal was subject to intense scrutiny after Greensill Capital, the main financiers of GFG Alliance, went bust, throwing the company’s finances into disarray and requiring global refinancing.

The Scottish Government has repeatedly refused to publish the valuation of the Lochaber Smelter it claims is “more than the outstanding amount guaranteed”, which is part of its “comprehensive security package” should the company go bust.

A GFG Alliance spokesperson said: "We remain in dialogue with Companies House. There is no impact on operations on any of our businesses."

A Scottish Government spokesperson said: “The submission of audited accounts is a matter for GFG Alliance as a private business. The Lochaber businesses continue to perform well and support jobs in the region.

“When the Lochaber guarantee was provided in 2016, the Scottish Government obtained a comprehensive security package that has been valued at more than the outstanding amount guaranteed.

“There has been no call under the Lochaber guarantee and the guarantee fees due to Scottish Government are up-to-date.”