Revealed, how global giants could rescue Scottish steel

GLOBAL metals group Liberty House has emerged as a potential buyer of two mothballed steelworks, raising hopes of a reprieve for the industry in Scotland.

The company, based in the UK and Asia, has expressed an interest in the Dalzell and Clydebridge plants, where 200 jobs remain at risk.

Business Minister Fergus Ewing welcomed the news and stressed time was of the essence. But union sources were more cautious and revealed Liberty House had been interested since before Christmas.

Any takeover is complicated by the involvement of investment firm Greybull Capital, which has been in talks with Tata Steel over its Scunthorpe steelworks – which has 3,250 staff – as well as sites in Teesside, Cumbria, York and France.

It is understood the company is less interested in the Lanarkshire plants, although they would still be part of any package. Liberty Group would have to buy the plants from Greybull.

There are also concerns about the state of the Scottish sites and workforce, after the Government committed only £195,000 to maintain a handful of staff when Tata pulls out entirely.

That pales compared to the £6million the UK Government invested in Scunthorpe, to ease the pain of job losses.

Mr Ewing said: ‘The task force welcomed the interest of Liberty Group and agreed it was a positive step in our objective to keep the Dalzell and Clydebridge plants open. While nothing is

Possible sale: Dalzell plant yet agreed, there is a degree of optimism.

‘Time is of the essence and the Scottish Government and Scottish Enterprise can offer support to any new commercial operator wishing to restart operations, with action being taken forward on energy costs, business rates, procurement and environmental issues.

‘All members of the task force will continue to do everything possible to secure a sustainable future for Scottish steel.’

Scottish Labour warned time was running out. Labour MSP and task force member James Kelly said: ‘While I welcome the news that a new potential buyer, Liberty House, is engaged in negotiations with Tata and the SNP Government, I still want to see a lot more urgency from Fergus Ewing.

‘Both plants, at Dalzell and Clydebridge, are now being run down so it is crucial progress is made before customers decide to go elsewhere. Some workers have already been laid off, with more to follow at the end of this month.

‘The First Minister and the SNP Government made a commitment to save the Scottish steel industry. I intend to hold them to that promise but they must get a move on.’

The UK industry has come under pressure from China dumping cheap steel in order to keep its own factories going during the downturn.

Nicola Sturgeon has accused Westminster of ‘sitting on its hands’ – but she failed to raise the issue during a high profile trade visit to China last year.

Central Scotland Nationalist MSP Clare Adamson said: ‘The Scottish Government has worked hard to identify a potential buyer for the Dalzell and Clydebridge works and this will be encouraging news for the workforce and wider community.’

Steelworkers’ union Community said that the interest from Liberty House underlined the potential at the plants.

A spokesman said: ‘As we have said all along, we welcome any interest from credible investors who want to create a sustainable future for the Dalzell and Clydebridge mills.

‘This reinforces our strongly held view that the skills of the workforce and the assets at the plants can be competitive. These businesses can have a successful future with the right long-term investment.’

No one at Liberty House was available to comment.

‘Time is of the

essence’