Around £120 million is to be invested to upgrade an aluminium smelter at Fort William in Lochaber.

Both Liberty House and SIMEC, members of the GFG Alliance, completed a £330m deal to purchase the site from Rio Tinto today, 19 December.

In addition, the companies have acquired hydro-power plants at Fort William and Kinlochleven, along with 100,000 acres of associated estate lands.

The major investment is expected to create up to 300 jobs directly along with hundreds more in the supply-chain. In addition, the deal means the existing 170 jobs have been secured at Lochaber.

Under the banner "Liberty British Aluminium", Liberty will create a new engineering and downstream manufacturing facility at the smelter. SIMEC will operate the hydro plants within its growing UK portfolio of renewable power assets

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Overall, plans are in place to eventually create up to 2,000 jobs, adding around £1 billion to the local Highland economy over the next decade by expanding the site's metal manufacturing and downstream engineering facilities.

Speaking during a visit to the site, First Minister Nicola Sturgeon said it was a "historic day" for the UK's remaining aluminium smelter.

"GFG Alliance's buyout of the complex will protect 170 existing jobs and with ambitious plans to invest in the site, expand operations and add value, we look forward to hundreds of new jobs being created in the coming years," she said.

Jay Hambro, Chief Investment Officer of the GFG Alliance, 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."

Sanjeev Gupta, executive chairman of Liberty House Group, added: "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. The Scottish Government has recognised the immense opportunity this investment brings. Their support has been refreshing and inspiring."

(LM)