Rennie urges UK Government to intervene to protect 133 jobs at steel mill


The UK Government has been urged to “step in” and assess the future of Scotland’s last major steelworks.
Liberal Democrat MSP Willie Renne claimed the Dalzell steel mill owned by Liberty Steel is “teetering on the edge”.
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Hide AdHe cited recent reports that Liberty Steel had suspended orders for plates from the Motherwell site, which was rescued eight years ago in a deal brokered by SNP ministers and today employs 133 people.
However, a Liberty Steel insider dismissed Mr Rennie’s call as a political stunt and said Dalzell is affected by poor market conditions for steel plate, made worse by high levels of imports, particularly from South Korea. They said it continues to fulfil orders that are economically viable and there are no plans to close or mothball the site.
In a letter to Jonathan Reynolds, the UK Secretary of State for Business and Trade, Mr Rennie said: “I want to bring to your attention the situation at the Dalzell steel mill owned by Liberty Steel and formerly owned by Tata.
“Just as we seek to roll out a massive expansion of renewables, this important steel plant is teetering on the edge, with recent reports indicating that Liberty Steel has suspended orders for plates from the Dalzell mill.
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Hide Ad“I have been warning about Liberty Steel for years but the Scottish Government have ignored those warnings. That is despite their role in the sale of the plant to Liberty Steel.
“In April 2016, the Scottish Government facilitated a controversial ‘back-to-back’ deal in which they purchased the Dalzell steel mills from previous owners Longs Steel, a subsidiary of Tata and immediately transferred them to Sanjeev Gupta's Liberty Steel.
“I believe it is time for the UK Government to step in before it is too late. The Scottish Government is only concerned about protecting its own reputation, having brokered the controversial deal.
“I am requesting that you make contact and get to the bottom of the situation so that there can be an honest discussion about how to secure its future and the future of the workers.”
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Hide AdA spokesman for the Scottish Government previously said Liberty Steel had “indicated that there is absolutely no substance to rumours around the future of the site”.
Last night, a spokesman said: “The Scottish Government acted quickly in 2016 to support a transaction involving Tata Steel and Liberty House to sustain 133 jobs at the site, where production continues. The Scottish Government maintains regular engagement with Liberty Steel.”
Mr Rennie’s letter comes amid talks between the UK Government and Tata about the future of the Port Talbot steel plant in Wales.
A spokeswoman for the UK Department for Business and Trade said: “We're working in partnership with trade unions and business to rebuild our steel sector in a way that’s both right for the workforce and delivers economic growth.
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Hide Ad“We recognise the need to support the future of steel-making in the UK, which is why we’ve committed to £2.5 billion of investment to rebuild the UK steel industry. We see a bright future for steel in the UK.”
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