Major investment plans for Highlands smelter

The smelter is one of the largest employers in Lochaber

Plans to create up to 600 jobs and invest £120m at the site of the UK's last remaining aluminium smelter yard at Fort William have been announced.

It follows a £330m deal announced last month involving Liberty House and Simec to take over the Rio Tinto site.

Their plans include creating an aluminium wheel manufacturing facility, and a further 300 jobs directly, with another 300 in the supply chain.

First Minister Nicola Sturgeon visited the site on Monday.

Liberty said it aimed to protect the existing 170 jobs in Lochaber and expand metal manufacturing and downstream engineering there.

'New chapter'

The purchase by Liberty and Simec - both members of the GFG Alliance - includes the hydro power plants at Fort William and Kinlochleven and more than 100,000 acres of land hosting the water catchment area, including Ben Nevis' foothills.

The Scottish government is supporting the plans by guaranteeing the power purchases of the aluminium smelter.

Nicola Sturgeon and Liberty House Group executive chairman Sanjeev Gupta at the smelter

Ms Sturgeon said the proposals reinforced the link between the smelter and the hydro station at Fort William.

She described it as a "historic day" for the smelter and said she looked forward to hundreds of new jobs in the area in the coming years.

She added: "Today is the start of an exciting new chapter in Scotland's manufacturing story and the Scottish government and its agencies will keep working with Sanjeev Gupta and the GFG Alliance to help them realise their enterprising vision for Lochaber."

'Bright new future'

Sanjeev Gupta, executive chairman of Liberty House Group and of the GFG Alliance strategic board, said: "We hope this day will come to be recognised as the start of a bright new future for Highland industry.

"It puts Lochaber right at the heart of our vision for sustainable and integrated local production that can revitalise British manufacturing."

Mr Gupta and Ms Sturgeon were among those who attended the announcement who wore a bindi, a symbol of Mr Gupta's Hindu faith.

Jay Hambro, chief investment officer of the GFG Alliance, and chief executive of Simec energy & mining divisions said: "These hydro-power stations have enough capacity to power around 83,000 homes.

"Today Lochaber provides the power required to produce 47,000 tonnes of aluminium. We have already identified investment programmes to significantly increase power generation from the existing assets and are studying how to create further capacity locally."

The purchase of Lochaber represents a major escalation of the GFG Alliance's investment in Scotland, following Liberty's acquisition of the Dalzell and Clydebridge Steel plants earlier this year.

Dalzell formally restarted in September after being mothballed by its previous owners.