News

Progress at Ferguson Marine

Published: 03 Sep 2019 16:16

Commitment to shipyard’s future.

The Scottish Government remains open to discussion with any parties interested in a commercial future for the Ferguson Marine shipyard, Economy Secretary Derek Mackay said.

Mr Mackay updated Parliament on the decision taken to bring Fergusons into public control to avoid its closure while administrators continue to test the market for potential commercial buyers.

He stressed his commitment to the completion of the two Caledonian Maritime Assets Ltd (CMAL) ferries being built at Fergusons, while protecting jobs and securing a future for shipbuilding at the yard.

Mr Mackay said:

“My focus is, and has always been, on ensuring completion of the two public sector ferries at the best value for money for the taxpayer, while also working towards the delivery of the other vessels under construction at the yard, and in doing so securing jobs for the workforce through continuity of employment.

“While the CMAL vessels are being completed, the Scottish Government will continue to conduct further work to support continued shipbuilding at the site.

“The Scottish Government will at all times remain open to discussions with any parties interested in securing a viable commercial future for the yard.

“But we will also explore the option of keeping the yard in public ownership, and how this might protect sustainable shipbuilding on the lower Clyde.

“Throughout this process the Scottish Government has worked in good faith to secure the vessels, the jobs and the yard.

“When presented with the prospect of the company entering into administration we acted quickly and decisively and the yard did not close.

“While clearly there is much work yet to do, our actions have ensured that there will be a future for Fergusons.”

Background

The Scottish Government is operating the yard under a management agreement with the administrators while the yard sale process is completed.

As part of the agreement entered into with the administrators, the Scottish Government will acquire Ferguson Marine Engineering Limited (FMEL) at the end of that process should no viable commercial offer be forthcoming during that period. This process is expected to last another two to four weeks and involves the administrator undertaking a market testing exercise.

There are around 300 employees at the yard (including permanent, temporary and contract workers).

A revised cost analysis will be carried out to establish the actions required to complete the two CMAL vessels.

The routes that the two CMAL vessels will serve will be Ardrossan to Brodick and Uig to Tarbert and Lochmaddy.