Nicola Sturgeon hails '˜historic' Highlands smelter deal
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Liberty House has completed the deal with mining giant Rio Tinto to buy the smelter in Lochaber and hydro-power plants at Fort William and Kinlochleven.
The company, which signed a deal with SIMEC last month, will protect an existing 170 jobs in Lochaber and wants to expand metal manufacturing and downstream engineering at the site.
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Hide AdThe deal hopes to bring up to 2,000 jobs to the Highlands directly and indirectly through suppliers and add around £1 billion to the local economy over the next decade.
The new owners, which are both members of the GFG Alliance, also announced a further £120m investment to upgrade equipment and create an aluminium wheel manufacturing facility. This will generate up to 300 jobs directly and hundreds more in the supply chain.
First Minister Nicola Sturgeon said: “This is a historic day for the UK’s last remaining aluminium smelter here in Lochaber.
“GFG Alliance’s buyout of the complex will protect 170 existing jobs and with ambitious plans to invest in the site, expand operations and add value, we look forward to hundreds of new jobs being created in the coming years.
“The Scottish Government is supporting GFG by guaranteeing the power purchases of the aluminium smelter, which reinforces the essential link between the smelter and hydro station at Fort William and provides a firm foundation for GFG’s ambitious expansion plans.”
The GFG alliance sees the Lochaber aluminium operation fitting into Liberty’s growing automotive industry focus.
Sanjeev Gupta, executive chairman of Liberty House Group and of the GFG Alliance strategic board, said: “We hope this day will come to be recognised as the start of a bright new future for Highland industry.
“It puts Lochaber right at the heart of our vision for sustainable and integrated local production that can revitalise British manufacturing.
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Hide Ad“We look forward to working with the highly skilled management team and workforce who join our family today and the many others who will join us in the future, as we embark upon this exciting journey here in the Highlands.”
Jay Hambro, chief investment officer of the GFG Alliance and chief executive of SIMEC Energy & Mining Divisions, added that the hydro-power stations have enough capacity to power about 83,000 homes. Lochaber provides the power required to produce some 47,000 tonnes of aluminium.
The deal also includes the sale of more than 100,000 acres of estate lands around the foothills of Ben Nevis, to be used as a water catchment area which Hambro described as a “sleeping giant”.
He said: “SIMEC will look to work with Scottish Government, Highlands & Islands Enterprise and all local communities to develop the great potential locked up here.”