WIREDGOV

Business plan to improve productivity at the shipyard.

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 36 Frigate programme.

Deputy First Minister Kate Forbes 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.”