Dalzell to restart ‘in coming weeks’ says McKee – Daily Business

Public finance minister Ivan McKee said the GFG Alliance that owns steel plants in Scotland has a “credible plan” for restarting operations at Dalzell in the coming weeks.

Sanjeev Gupta had at the turn of the year given his commitment to the steel businesses he owns in Scotland, he said, and talks with the company this month indicated progress to seeing them thriving.

“It is no secret that GFG has been weathering a storm since the collapse of Greensill Capital in 2021 and it has been working to refinance its debt,” he told MSPs. “I understand that GFG was able to settle with some creditors.”

Mr McKee was responding to questions over the Scottish government’s guarantees given to Mr Gupta when he acquired the plants.

Talks with former UK Business Secretary Jonathan Reynolds and Scottish Secretary Ian Murray in July over a £2.5 billion support package for UK steel operations would resume with their successors, he said, when asked about Scotland’s plants getting a share of any UK funding.

“We are monitoring with interest the steps the UK government has taken,” said Mr McKee. “My officials are engaged with the relevant UK government departments to understand their plans for the business.

“I want to assure members that we have contingency plans in place to cover any eventualities.”

Green MSP Lorna Slater asked if this covered the possibility of Scottish public money being used to bail out Mr Gupta.

Mr McKee said there were commercially confidentiality details in these plans but added that Ms Slater’s point would be taken into consideration.

Scottish Conservative spokesman on business and economy Murdo Fraser said: “There will still be widespread concern after this statement about the future of these businesses and those whose jobs depend on them.

“Sanjeev Gupta has a track record of broken promises. He said none of his plants would close and he would not give up on the workforce.

“Given all those broken promises, it would be reckless of SNP ministers to rely on any future assurances from him.

“Having put eye-watering amounts of taxpayers’ money at risk, the SNP should be clear on how much of the initial £586 million offered by them could still be lost.

“Ivan McKee should also be upfront about what the current value of the securities is since he is relying on them to recoup public funds. And for all his talk of contingency planning, he was completely unable to guarantee jobs for the workforce at Dalzell and Lochaber in this statement.”

Scottish Liberal Democrat economy spokesperson Jamie Greene MSP accused the SNP government of “permanent evasion” after they could not say whether there are still plans for a new billet plant at Mr Gupta’s Lochaber smelter.

He noted that Mr McKee did not say whether those plans are still in place.

In 2021, Highland councillors approved plans for a recycling and aluminium billet plant at Lochaber. It is hoped the new plant would open up more markets for the site.

Mr Greene said: “It beggars belief that SNP ministers are still refusing to give clear and straight answers on all this.

“I am very concerned that the minister cannot say whether there are still plans for a new billet plant at Lochaber.

“Workers at the plant deserve better than a total absence of any detail or commitment. All they are getting from this government is permanent evasion.

“The Scottish Government must urgently confirm one way or another whether these plans have been shelved.”