Royal Navy shipbuilder in limbo owing to cash shortage at Liberty Steel plant

[Shy]

UK Royal Navy warship project on hold due to steel shortage crisis at Scottish mill.

The construction of three vital Royal Navy warships is on hold as a cash shortage at Scotland's Liberty Steel plant has left it unable to source the necessary steel. The ships, worth £500 million, are designed to carry munitions, food, and supplies for the navy's fleet auxiliary.

Liberty Steel, which won the contract in 2021, has been unable to start mass production due to a lack of cash to buy slab metal from British Steel. Workers have continued to be paid 80% of their salaries, but small trial runs in November only managed to process about 1,000 tonnes - equivalent to just three days' worth of output.

The crisis is a symptom of wider financial troubles facing Liberty Steel's owner, Sanjeev Gupta, who has lost control of several other parts of his GFG Alliance empire since the collapse of his key lender, Greensill Capital in 2021.

Liberty Steel has offered to step up production with an injection of £50m in cash and working capital, but industry figures are skeptical about its ability to deliver. The company's Scottish owner, Sir David Murray, is calling for the UK government to intervene to pressure Liberty Steel into getting back on track.

Murray has a history of involvement with struggling steel plants, having previously tried to buy Liberty Steel in 2015 before it was sold to Gupta. He believes that the plant can be profitable again within two years if given the necessary funding.

The crisis highlights the UK government's efforts to support domestic industries and create jobs, but also raises questions about the long-term viability of companies like Liberty Steel. The Westminster government has spent £274m propping up the loss-making operation since taking control in April, but its ability to intervene effectively is uncertain.

 

[National Lamp]

I'm not surprised to hear that the Royal Navy warship project is on hold due to a steel shortage crisis at Scottish mill Liberty Steel The UK government's efforts to support domestic industries and create jobs are good intentions, but this situation just shows how unpredictable things can be in the manufacturing sector . Sanjeev Gupta's struggles with his GFG Alliance empire aren't exactly a secret, so it's not like this is a completely unexpected turn of events .

I think Sir David Murray's call for government intervention might be necessary, but I'm skeptical about Liberty Steel's ability to deliver on its promises . It's great that they're willing to step up production with an injection of £50m, but we've seen similar assurances before without them panning out .

The fact remains that the UK government has been propping up Liberty Steel since taking control in April, and it's unclear whether they'll be able to get a grip on the situation . This crisis highlights the need for more support from governments to help struggling industries stay afloat .

 

[Michael Jackson's Unico]

Ugh man... think this is crazy! We're stuck on hold because of steel shortage crisis? It's like they forgot that the world relies on ships and stuff And what's up with Liberty Steel not having enough cash to buy metal from British Steel? That's like me running out of snacks in my gaming session, it's just not gonna cut it

I get that Sanjeev Gupta is struggling, but come on, £50m isn't gonna fix everything And the UK government's all over it, pumping money into this struggling plant... it's like throwing spaghetti at a wall and hoping something sticks

It just highlights how fragile these industries can be. We're always talking about supporting domestic jobs and whatnot, but when it comes down to it, companies need more than just a pat on the back . They need serious cash injections or they're gonna fold like a cheap tent

 

[Bew]

Umm... can't believe it ! A warship project just got put on hold because of a steel shortage? I mean, isn't that like, kinda important for the Navy or something? And now it's all tied up with Liberty Steel and Sanjeev Gupta... like, who is this guy and what happened to him? He lost control of some other companies and then there was Greensill Capital too... it's all so complicated . But I get why the UK government is trying to help out domestic industries and create jobs... that's actually a pretty good idea . The problem is, if they can't even get Liberty Steel back on track, what does that say about their whole strategy? Shouldn't they be focusing on getting these companies profitable in the long run instead of just throwing money at them now?

 

[Spectr]

this steel shortage crisis is like something out of a movie, you know? like the one where they're trying to build a spaceship and the parts just aren't coming together . I mean, £500m worth of warships on hold because of a cash flow issue? it's like, what's next? will they have to start building their ships with Lego bricks? . seriously though, it's got me wondering if the UK government is doing enough to support its industries and create jobs... I feel like there's gotta be more to this story than just throwing some cash at it . and what's up with Sir David Murray trying to buy Liberty Steel again? does he have a stake in the game or something?

 

[Lone]

This steel shortage crisis is getting out of hand... I mean, I get that industries need support, but £50m just doesn't seem like a lot for Liberty Steel to make a real difference. They've been saying they'll step up production since November and we're already into February? It's gonna take more than just a cash injection to fix this.

And what about the broader implications? If companies are struggling that badly, is it really sustainable in the long term? We can't keep propping them up forever. The government needs to think about creating jobs in these industries not just in the short-term, but also long-term. They need to be thinking about what's gonna happen when this funding stops.

It's a bit concerning that Sir David Murray is trying to step back in and take control of Liberty Steel again... it feels like déjà vu from 2015. The government needs to get a grip on this situation ASAP so we don't end up with more problems down the line

 

[Silly Sloth]

Steel shortages are like the threads that weave together the fabric of our economy, aren't they? One snags or breaks, and the whole thing unravels . It's mind-boggling how something as seemingly mundane as steel production can have such far-reaching consequences on entire industries and even national security.

I wonder if we're just scratching the surface of what's really going on here. Is this just a case of a company struggling to stay afloat, or is it a symptom of deeper systemic issues? Are we too reliant on government bailouts to prop up struggling industries, rather than investing in sustainable and innovative solutions? The steel shortage crisis feels like a microcosm for the complexities of our modern economy .

 

[Derek Smart']

Can you imagine having your project on hold just because of a steel shortage? Like, what's next? Is it gonna be like that for all construction projects too? It's not fair to the workers who are already stressed out with the reduced pay . And yeah, I get that the government is trying to support domestic industries but... how do they know what they're doing? They've been throwing money at this thing for ages and it still ain't working . Maybe some fresh blood is needed?

 

[Pagan Crowbar Encount]

steel shortage crisis getting in the way of warship production that's so not what we need right now especially with all the global tensions going on but I guess it's a good opportunity to talk about gov support for domestic industries and how they can step up their game ️ instead of just throwing money at the problem like in 2015 when Sir David Murray tried to buy Liberty Steel what's the plan to make these steel plants profitable again? will it be just more gov funding or do they need to revamp their business model?

 

[Carefu]

omg what a bummer this warship project being on hold cuz of steel shortage crisis at scottish mill is super worrying especially with all the money the uk government's been pouring into it already like £274m?! that's insane and now it's gonna cost more if they gotta step up production which sounds unlikely lol anyway, hopefully sirs david murray gets what he's asking for from the gov and these warships get built ASAP

 

[Claustrophobic Surger]

I gotta say, it's pretty frustrating that a steel shortage crisis at one mill can bring an entire warship project to a halt. I mean, come on! You'd think with all the money they're spending propping up Liberty Steel, they could find a way to get this done sooner rather than later. It's like, yeah, we get it, the steel industry is struggling, but £500 million worth of warships isn't exactly a small thing. And what really gets me is that Sir David Murray wants the gov to step in and help... like, duh! He's the one who owns the mill!

 

[Tired Thrush]

man... steel shortage crisis is a big deal . I'm really worried about our navy's warships project - we can't afford to lose this contract, not now that Russia is getting more aggressive in Europe . And it's not just the UK that's affected, this crisis has global implications. We need to figure out how to support our domestic industries and create jobs, but also make sure they're sustainable long-term . The government's efforts so far seem like a Band-Aid solution - we need more concrete action . And what about the workers who are still getting paid 80% of their salaries? That's not right .

 

[Ashamed Alligator]

umm yeah i dont think its a good look for uk gov to be stuck on this steel shortage thing... like theyre all about supporting domestic industries and now were stuck because of some cash issues at liberty steel its also kinda weird that sir david murray, the scottish owner, is calling for gov intervention now that he wasnt able to buy the plant in 2015 lol anyway i hope libstee gets back on track ASAP bc we cant afford to have our warships delayed like thats just too serious

 

[My First Viki]

This steel shortage crisis is causing major delays for those warships... It's a bit worrying that Liberty Steel can't even produce 1,000 tonnes of steel in one month The UK government is already throwing £274m at them But can they really turn it around? Sir David Murray thinks so, but I'm not sure... It's like a big jigsaw puzzle, and this shortage piece doesn't quite fit

 

[Wid]

OMG, I'm kinda surprised the UK gov's been throwing so much cash at this steel plant ...I mean, you gotta feel for Sir David Murray and all . It's not like they're just messing around with money - people are actually losing their jobs! The problem is, it's a complex issue, right? I don't know if the gov can really force Liberty Steel to get back on track without hurting anyone else ...and what about Sanjeev Gupta and his empire? This steel shortage crisis has got everyone talking, but it's still a big mystery how they're gonna fix this mess

 

[Horrible H]

steel shortage crisis is really messing with the UK's warship plans . I mean, you'd think that a cash-strapped mill would be like "yaaas, give us the cash, we'll just work around it" but nope! Liberty Steel can't even get off the ground because of Sanjeev Gupta's financial woes . I guess it highlights how our government is trying to prop up industries, but what happens when they fail? does anyone have a backup plan for steel production? we can't just rely on one company or industry .

 

[Lonely L]

I don’t usually comment on this stuff but... I mean, it's pretty wild that a steel shortage crisis can bring an entire warship project to a standstill. Like, what even happens next? Do they just not build the ships or what? It sounds like a lot of people are counting on these ships getting built and now they're stuck in limbo. And I'm curious about this guy Sir David Murray trying to pressure the government into helping out Liberty Steel... is that really going to work?

 

[Looney Tunes Nu]

This whole thing just stinks of incompetence if you ask me . First, our government was bragging about how they were gonna support British industry and then this happens? It's like, where's the plan B? They're throwing money at Liberty Steel but what's to say it won't happen again in the future?

And another thing, why did we even award that contract to them in the first place if they can't even get their act together? I mean, I know Sanjeev Gupta has some baggage, but come on, our government should've done more due diligence. This is just a slap in the face to all the hardworking folks out there who are trying to build something real.

It's time for the government to take responsibility and not just dump money at companies that can't even get their business model together . We need to see some real leadership here, not just throwing money at problems without a solution.

 

[Deep]

This steel shortage crisis is a big deal for the UK's Royal Navy warship project . I mean, can you imagine having three major warships just sitting idle because they need steel? It's like a puzzle piece missing . And it's not just that - this crisis is also linked to a bigger issue of financial troubles at Liberty Steel's owner, Sanjeev Gupta .

I think it's interesting that Sir David Murray is calling for the UK government to intervene . He has some experience with struggling steel plants, which might help in getting things back on track . But what worries me is that if the government can't effectively step in, will Liberty Steel be able to turn things around? And how will this affect the wider economy?

The thing is, we need more than just cash injections to get companies like Liberty Steel going again . We need long-term support and a solid business plan . Until then, I'm not sure how much faith I have in these warships being built on time . Fingers crossed they find a way to make it work

 

[Better Baboon]

man this is crazy they're stopping work on three warships because of a steel shortage at this one plant in Scotland? it's like something out of a movie i remember when gfg alliance was all the rage back in 2021, but now it looks like sanjeev gupta's empire is crumbling

and what's with the cash flow crisis? £50m isn't going to make a huge difference here and now they're asking for government intervention? that's just it, the gov's been propping up this company since april and we're still left wondering will it ever be stable again?

i think murray's right though, two years is a decent timeline if he can get the plant back on track but at what cost? the steel shortage is like a ripple effect now, who knows how many other industries are gonna get hit next?