The Oban Times

Call for Brexit ‘clarity’ over alloy wheel plant

- By Mark Entwistle mentwistle@obantimes.co.uk

Uncertaint­ies over Brexit’s potential impact on the automotive industry has forced Lochaber smelter owner GFG Alliance to explore various possible uses for the liquid aluminium it produces in Fort William as an alternativ­e to manufactur­ing alloy car wheels at a planned new £120 million plant on the site.

The news came as an event was held at the smelter on Tuesday, the UK’s only remaining aluminium factory, to mark its 90th anniversar­y along with that of its Lochaber hydro-electric plant.

GFG Alliance subsidiary Liberty has invested nearly £5 million in preparator­y work for a downstream manufactur­ing plant in Fort William, which includes the recruitmen­t of an additional 40 employees.

The anniversar­y event was meant to be addressed by Sanjeev Gupta, executive chairman of the GFG Alliance, but Tuesday’s bad weather forced his plane to return to Prestwick Airport.

However, Dr Douglas Dawson, chief executive officer of GFG Alliance’s subsidiary, Liberty Industries Group, which oversees the smelter operation, was present.

Dr Dawson said the company’s ambitions for downstream manufactur­ing were ‘absolutely undiminish­ed’.

He went on: ‘We do wish, and will make, products from our superheate­d liquid aluminium that we make proudly here in Fort William.

‘The reality is we are not insulated from the world’s economic pressures and environmen­ts.

‘And the geopolitic­al environmen­t we have is probably unpreceden­ted in the UK. But, as I repeat, our ambitions are undiminish­ed.’

And in an almost simultaneo­us official press statement issued on Tuesday, GFG Alliance stated: ‘Options under considerat­ion include an automotive wheels plant or, in view of a downturn in UK car production, alternativ­e industrial uses for the liquid aluminium produced in the Lochaber smelter – such as industrial extrusions or water bottles.’

Speaking on BBC Radio’s Good Morning Scotland programme, also on Tuesday, GFG Alliance’s chief investment officer, Jay Hambro, explained that while the alloy wheels factory project was ready to start, the company needed to know car manufactur­ers would stay in the UK after Brexit.

He said GFG Alliance ‘just needs a moment of clarity as to the future and then will push the button’.

Pressed for further con

‘The reality is we’re not insulated from the world’s economic pressures.’

firmation on the situation by the Lochaber Times, a GFG Alliance spokesman in London confirmed Mr Hambro’s comments saying: ‘As Jay said in the interview, we’re “waiting to press the button” on the project but awaiting clarity over Brexit and its impact on the automotive industry.

‘We’re still continuing preparatio­ns for the plant with a team on site.’

The smelter was acquired by the GFG Alliance for £330 million three years ago and produces up to 50,000 tonnes of aluminium annually, powered by renewable energy from fresh water running off the slopes of nearby Ben Nevis.

Employees past and present gathered for the anniversar­y celebratio­ns and were joined by guests, including Ian Blackford, who were treated to commemorat­ive bottles of whisky from the local Ben Nevis distillery, while a retrospect­ive exhibition detailed the Lochaber plant’s colourful history.

Coinciding with the event, the GFG Alliance published its first Scottish report detailing industrial investment of £500m in six aluminium, steel and energy sites across the country, the creation or safeguardi­ng of more than 400 jobs and spending of nearly £22m with local suppliers.

In a statement, Mr Gupta said he was very proud that GFG Alliance is not only keeping that tradition of smelting going in Lochaber but is investing in staff, capacity and in downstream manufactur­ing.

‘This is a very special place and it’s a privilege to be a part of its history.

‘As we drive this project forward, we have added 40 people to our Fort William team,’ he said.

‘The model we see here – of renewable energy powering heavy industry – is at the very heart of GFG’s vision for the renewal and revival of foundation industries not just in Scotland but internatio­nally.’

 ?? Photograph: Iain Ferguson ?? Dr Douglas Dawson, CEO of Liberty Industries Group.
Photograph: Iain Ferguson Dr Douglas Dawson, CEO of Liberty Industries Group.

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