Call for Brexit ‘clarity’ over alloy wheel plant
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.’