Tata Scottish steel mills in Clydebridge and Dalzell saved by deal with Liberty House

 
Jessica Morris
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Tata Steel Prepares To Make Redundancies
Tata Steel is streamlining its business operations (Source: Getty)

Two Scottish steel plants have been saved from closure after a deal between Tata Steel and metals group Liberty House.

The Clydebridge and Dalzell plants were due to be abandoned as Tata steamlined its business, a move which would've resulted in 1,200 layoffs.

The deal is being mediated by the Scottish government, which will buy the two plants off Tata, before selling them onto Liberty House.

Britain's steel industry has been struggling to compete in the global marketplace due to a slew of cheap steel imports from China, high energy costs, high business rates and a strong pound.

"The agreement follows Tata Steel's announcement in October 2015 that it would stop its European plate production, which led to the mothballing of the Dalzell and Clydebridge plants at the end of 2015," Tata said in a statement.

"Rather than closing the facilities, Tata Steel has continued to maintain them to enable plate production to potentially restart in the future."

Sanjeev Gupta, executive chair of Liberty House Group, said: "This agreement saves two great facilities in Scotland."

"Now we must turn our attention to restoring these businesses to their former glory, steadily rebuilding their skilled workforces and customer base."

"Clydebridge and Dalzell will fit well into our vision for an integrated, flexible and sustainable steel sector, from recycled local scrap using renewable energy-making green steel to value added downstream and engineered products."