Liberty House, the company hailed as the rescuer of Scotland’s steel industry, is targeting the decommissioning of North Sea oil rigs in a plan that could create hundreds of jobs.
Sanjeev Gupta, who recently re-opened the Dalzell steel plate mill in North Lanarkshire, has said he is in “exploratory talks” with the oil industry to turn redundant oil rigs into scrap metal.
Liberty is thought to be planning to build an electric arc furnace somewhere in Scotland to melt down the high grade steel used to build the oil rigs. The firm estimates the furnace will cost £200million and create 600 jobs although a location has not been confirmed.
But Mr Gupta said the company would look to base the facility in Scotland, “mainly because of the Scottish government, their enthusiasm,” he said.
Such a move could reverse a trend for scrap metal exports – the UK is the highest per capita exporter of scrap in the world, shipping out 7million tonnes per year.
First Minister Nicola Sturgeon formally reopened the steelworks in Motherwell last week, hailing it as a “fantastic day for Dalzell workers, for Motherwell and for Scotland’s steel industry”.
Indian conglomerate Tata ceased production at the Dalzell steel plate mill and the Clydebridge plant in nearby Cambuslang in 2015 with the loss of 270 jobs.
The plants were bought by international metals firm Liberty House earlier this year with 120 staff, many of whom were former employees. It hopes to increase employment to 200 within 18 months.
Jon Bolton, chief executive of Liberty Steel UK Plates and UK Steel Development, has said he is “confident” Clydebridge will also reopen in the “near future” and that other potential uses such as for manufacturing towers for wind turbines are under consideration for that plant.