Ministers have agreed to support new proposals aimed at enabling
Ferguson Marine Port Glasgow (FMPG) to improve productivity and
build a sustainable future.
As Glen Sannox and Glen Rosa approach completion, the Scottish
Government has been working with the company on a long term
business plan which positions the shipyard to bid for and secure
new work.
Up to £14.2 million will be invested over two years subject to
the plan passing detailed legal analysis and independent
financial and commercial assessments, which should be complete by
the Autumn.
Separately, talks are at final stages with BAE Systems about FMPG
securing further work on the Type 26 Frigate programme.
Deputy First Minister stressed that delivering
productivity improvements and securing commercial contracts were
vital components in ensuring the shipyard's long term future.
Ms Forbes said:
“Now that Glen Sannox is approaching handover, our focus is on
the next phase for FMPG's future. That requires change and
investment to target new opportunities.
“The Board has developed a business plan that it believes has the
potential to secure a competitive future. Subject to independent
legal and commercial analysis, the Scottish Government will
provide significant new funding to support the yard's
modernisation and improve productivity.
“Additional funding goes hand in hand with winning new commercial
contracts, and it is extremely good news that talks with BAE
Systems to secure further work have reached this advanced stage.
“Extensive analysis and legal advice confirm that a direct award
of the small vessels phase one contract to FMPG introduces
substantial risks and uncertainties for the shipyard and the
communities which rely on the lifeline vessels, due to the strict
conditions imposed by the UK Subsidy Control Act. Instead, we
will do everything which is legally possible to support the yard
and the workforce to secure a long-term future, which is why we
have come to an agreement on initiatives and funding to improve
productivity.
“When the Scottish Government stepped in to save FMPG in 2019 we
did so to preserve jobs and develop the next generation of
shipbuilders on the River Clyde. That commitment remains
unwavering. The company will of course be able to consider a bid,
either individually or in partnership with other yards, but its
long term future depends on winning work on a competitive basis.”
A spokesperson for BAE Systems said:
“BAE Systems has a good working relationship with Ferguson
Marine, which is a key local supplier of structural steelwork and
has built two units for the Type 26 programme.
“We are in advanced negotiations with the company regarding
further strengthening our partnership, the placement of
additional work subject to agreement of terms and its continued
involvement in the programme.”
