Latest news with #HMSBirmingham
The Herald Scotland
6 days ago
- Business
- The Herald Scotland
Ferguson Marine Port Glasgow shipyard BAE win very good news
So it was heartening to learn the yard, which provides such crucial employment in Inverclyde, had won a significant contract. Ferguson Marine (Port Glasgow) Ltd last week announced that it had signed a contract with BAE Systems to fabricate three structural components for 'Ship 4 HMS Birmingham', the fourth frigate being built as part of the Type 26 programme. Graeme Thomson, the recently appointed chief executive of Ferguson Marine, made some important points around the award of the work. In particular, he declared it 'proves the ability of our skilled workforce to secure new business'. This is indeed an important aspect of this contract for Ferguson Marine. Deputy First Minister Kate Forbes, when I interviewed her last month, highlighted the importance of restoring confidence in Ferguson Marine for it to 'succeed and survive', declaring then that the latest delays in delivering the Glen Rosa ferry 'don't help with the public narrative'. Ms Forbes added that she had 'full confidence in the ability of the yard to submit quality tenders' for future work. Ferguson Marine's winning of the contract from BAE Systems is hopefully a strong signal that such confidence is justified. Read more Ms Forbes also said last month: 'I would like to think that all parties in the Scottish Parliament want to see Ferguson Marine succeed and survive, which is why we need to build confidence, not knock it.' Hopefully, the work secured from BAE Systems will help bolster general confidence in Ferguson Marine as it bids for other contracts. Mr Thomson also described the contract for the work on HMS Birmingham as an 'important opportunity to grow the skill of the younger members of our workforce, to win future commercial contracts in this and related markets'. This is another crucial point, in the context of the longer-term future of Ferguson Marine. It was also encouraging to hear BAE Systems, which has engaged Ferguson Marine previously to build two units on the Type 26 programme, describe its relationship with the Port Glasgow yard as 'productive'. This positive tone came from Simon Lister, managing director of BAE Systems' naval ships business, who also described Ferguson Marine as 'a key supplier of structural steelwork on the Clyde'. And his comments are particularly heartening because they are based on the work Ferguson Marine has done for BAE Systems already, with Mr Lister highlighting the fact the Port Glasgow yard has built two units for the Type 26 programme. This surely highlights the quality of work the yard can produce. This is a very significant positive in the context of all the noise around the Glen Rosa and Glen Sannox contract and given the importance of Ferguson Marine securing new work so, as Ms Forbes puts it, the yard can 'succeed and survive'. Read more The Port Glasgow yard, owned by the Scottish Government since late 2019, said the latest BAE Systems contract 'marks an important development for Ferguson Marine, the last remaining commercial shipyard in Scotland and the only shipbuilder left on the lower Clyde', as it 'seeks to secure new work'. It declared that it 'is expected that steel cutting will commence imminently as the shipyard stands ready to commence manufacturing'. Ferguson Marine observed the Type 26 programme being delivered by BAE Systems will provide the Royal Navy with 'the most advanced anti-submarine warfare capability available'. It observed construction is under way for the first five of eight Type 26 frigates, with the ships at various stages of build. Each ship consists of nearly 60 structural units which are integrated at BAE Systems' Govan shipyard before entering the water and moving to the Scotstoun shipyard for systems testing and commissioning, Ferguson Marine noted. Mr Thomson said: 'This contract is a significant step for Ferguson Marine and will enable us to play a role in enhancing the UK's world-class maritime capability. In recent years Ferguson Marine has been working with BAE Systems and, as the last commercial shipbuilder on the Clyde, we are uniquely positioned to act as an extension of the important work happening under the Type 26 programme. 'As we seek to add to our book of orders, this proves the ability of our skilled workforce to secure new business. We are committed to expanding our experience.' It emerged last summer, well before Mr Thomson's arrival, that Ferguson Marine was in 'advanced negotiations' about doing further work for BAE Systems on the Type 26 programme. BAE Systems said last July: 'BAE Systems has a good working relationship with Ferguson Marine…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.' It was great to hear last week this deal had now been sealed. Mr Lister said last week: 'This award strengthens our relationship and their continued involvement in the programme.' Ferguson Marine meanwhile declared it is committed to continuing to develop its workforce and 'maintaining Clyde-built skills' through its apprenticeship programme while 'progressing the delivery of Glen Rosa and planning to deploy £14.2 million in capital investment from the Scottish Government to make vital infrastructure and equipment upgrades, modernising the yard and making it future fit'. The BAE Systems contract is a very positive development on this journey. Hopefully, Ferguson Marine can now build on this momentum.
Daily Record
10-07-2025
- Business
- Daily Record
New contract at Ferguson is shot in the arm for Scots ship building industry
Shipbuilding remains Glasgow's single biggest manufacturing industry. Thousands of men and women are hard at work every day at the two shipyards at Govan and Scotstoun, building the next generation of frigates for the Royal Navy. The order book is full until the 2030s and BAE Systems, the defence giant which runs the sites, struggles to fill all of the available apprenticeship schemes. It is a different story down river at the much smaller Ferguson Marine yard, which has historically built ferries, not complex warships. Nationalised by the SNP government in 2019, it was lumbered with a needlessly complex design for two car ferries which it simply could not finish on time. Delay after delay turned an industrial story into a political scandal. But there was good news yesterday when it was announced that Ferguson workers will help fabricate three parts of HMS Birmingham, which is already being assembled at Govan. The naval order is a welcome shot in the arm for the yard and will hopefully tide it over until other orders can be secured. Shipbuilding is an iconic industry in Scotland and particularly on the Clyde. The term Clydebuilt was once a synonym for world class, denoting a quality of workmanship in the magnificent vessels that were built along the famous old river. Increased investment, followed by new contracts, should be welcomed by anyone who cares about Scottish industry of which shipbuilding is an integral part. Save our ailing pubs and bars The news that Scotland's pub culture is under threat is a growing concern. Since 2020, more than 200 pubs and bars have closed with industry experts describing the situation as critical. That's why there are now calls on both the Scottish and UK governments to provide greater rates relief and reduction, if not a reduction of the VAT charges which, at 20 per cent, eat a chunk of profits. Rising costs mean more pubs and bars will go to the wall in the coming year. What we need to remember is that pubs and bars are not drinking dens, as the puritans and temperance movement might have called them. They are a community gathering point, a hub where people can meet, perhaps get a bite and socialise. Demands made by those at the sharp end in the licensed trade should be taken seriously.
The Herald Scotland
09-07-2025
- Business
- The Herald Scotland
SNP accused of ‘hypocrisy' after Ferguson wins warship deal
The planned £11 million facility by Rolls-Royce and the Malin Group at the Scottish Marine Technology Park in Clydebank almost collapsed because Scottish Enterprise was unable to provide a £2.5m support grant. When asked about the decision last month, Rural Affairs Secretary Mairi Gougeon said it was about principles. 'I think the key difference between ourselves and the UK Government is that, when we have principles, we stick to them,' she told the BBC. The Tories accused the SNP of "hypocrisy on stilts." READ MORE HMS Birmingham is currently under construction at BAE Systems' Govan shipyard in Glasgow. It is the first ship to be built under a £4.2 billion contract secured by the firm to deliver five warships. Ferguson's will fabricate three structural units for the ship. The Type 26 is designed for anti-submarine warfare and high-intensity air defence. In its press release, Ferguson Marine said the vessel would 'provide the Royal Navy with the most advanced anti-submarine warfare capability available'. BAE won a £4.2bn contract to build five warships (Image: Andrew Milligan/PA Wire) The announcement is a rare spot of good news for the yard, whose reputation has been tarnished by problems over two long-delayed ferries. The Glen Sannox and Glen Rosa were first ordered in 2015 and were due to be ready in 2018. While the former launched this year, the latter is unlikely to be in the water before 2026. Both were expected to cost £97 million; the final bill is now likely to be close to £460m. Last week, Holyrood's Public Audit Committee issued a scathing report into Ferguson's, highlighting failures of leadership, board instability, inadequate internal audits, serious weaknesses in contractor oversight, and governance failures around exit packages for senior staff. It said urgent investment was needed to ensure Ferguson Marine could be competitive once again. Scottish Labour Economy, Business and Fair Work spokesperson Daniel Johnson said it was welcome that the troubled yard had secured the contract. He said: 'SNP ministers have a habit of rushing down to Port Glasgow for a photo-op, but any crowing from them about this would be the height of hypocrisy. 'Their student union politics on defence has put good, skilled jobs at risk in Scotland. But as we saw last month, if the SNP will not step up to support skills and jobs in Scotland, then Labour will.' Scottish Tory MSP Stephen Kerr said it was "hypocrisy on stilts from the SNP." He added: "They have been at pains to defend their reckless decision not to award funding for a new welding centre, yet nationalised Ferguson Marine has now won this major contract. "They are clearly more interested in virtue signalling rather than having a coherent policy for Scotland's defence sector. "SNP ministers should urgently come clean as to whether this contract finally signals a shift in policy at such an uncertain time in the world." At last month's NATO summit, Prime Minister Sir Keir Starmer committed the UK to raising defence spending to 5% of GDP by 2035. Liberal Democrat Scottish Affairs spokesperson Christine Jardine said she hoped Ferguson Marine would benefit from the increase in defence spending. 'Perhaps now is also the time for SNP ministers to reconsider their confused stance on matters of national security and support for the defence industry in Scotland. As the UK builds up its defences after years of Conservative neglect, there will be opportunities for Scottish firms and Scottish workers. 'The Scottish Government will need to focus on creating the right environment for jobs and investment, as well as tackling obstacles that could otherwise dampen those opportunities.' Ferguson Marine said it expected steel cutting to commence imminently 'as the shipyard stands ready to commence manufacturing'. Ferguson's has not had its troubles to seek in recent years (Image: Newsquest) Graeme Thomson, CEO of Ferguson Marine, said: 'This contract is a significant step for Ferguson Marine and will enable us to play a role in enhancing the UK's world-class maritime capability. 'In recent years Ferguson Marine has been working with BAE Systems, and as the last commercial shipbuilder on the Clyde, we are uniquely positioned to act as an extension of the important work happening under the Type 26 programme. 'As we seek to add to our book of orders, this proves the ability of our skilled workforce to secure new business. We are committed to expanding our experience, with this representing an important opportunity to grow the skill of the younger members of our workforce, to win future commercial contracts in this and related markets.' READ MORE: Deputy First Minister Kate Forbes welcomed the news of the contract. She said: 'This contract award is a positive demonstration of the shipyard's capabilities, skills and ability to win work in a commercial playing field, and most importantly, the workers at Ferguson Marine. 'The Scottish Government's decision to take Ferguson Marine into public ownership saved the last commercial shipyard on the Clyde and we continue to ensure the long-term future of the Yard and the workforce, with investment of up to £14.2 million in the yard over the next two years in order to help it modernise and secure further future business. 'Securing new business for the Ferguson Marine Yard has always been vital for the Scottish Government, which is why this contract is so welcome. I sincerely hope that the business's future commercial strategy, which is being spearheaded by a new CEO, will enable Ferguson Marine to win new business in its target markets.'
Daily Record
09-07-2025
- Business
- Daily Record
Clyde shipbuilding 'thriving' thanks to UK Government investment in defence
Ian Murray welcomed the announced the Scottish Government-owned shipyard at Port Glasgow to build part of a new Royal Navy frigate. Shipbuilding on the Clyde is "thriving" thanks to UK Government investment in defence, the Scottish Secretary has said. Ian Murray welcomed the announcement today a Scottish Government-owned shipyard at Port Glasgow had secured an order from the Royal Navy to build part of a new frigate. Ferguson Marine, which was nationalised by SNP ministers in 2019, has struggled in recent years to complete two new car ferries ordered by CalMac. A committee of MSPs last week warned it needed urgent investment to allow it to survive. The firm has now won a contract to build three sections of HMS Birmingham, which is currently under construction at the BAE yard at Govan. Murray said: "Shipbuilding on the Clyde is thriving thanks to UK Government investment in defence. This Royal Navy contract going to Ferguson Marine is great news for the workers there, who will play a key role in keeping our country safe. This is the UK's defence dividend in action for Scotland." Fergusons employs 300 workers but only had one contract remaining on its books - to finish the long-delayed ferry, MV Glen Rosa. The yard recently missed out on a government-funded order for seven small CalMac ferries, which went to a Polish shipyard instead.] Inverclyde MP Martin McCluskey said the contract for work on HMS Birmingham was a "lifeline" for the yard. "We want the yard to be building boats, not just fabrication as it's doing for BAE - but what this is today is the first new contract the yard has had in quite some time," he said. "It's providing them with work to keep going, hopefully bridge a gap between now and whenever the next contract comes which I hope is a direct award for Lord of the Isles from the Scottish government." Glasgow's two remaining shipyards at Govan and Scotstoun are owned by defence giant BAE Systems and specialise in building complex warships for the Royal Navy. Both sites are currently working at capacity to complete the Type 26 frigate programme, which will run into the 2030s. It comes as the SNP Government was last month accused of of "student union politics" after it refused to invest in a specialist skills centre to train the next generation of Scottish shipbuilders. Scottish Enterprise, a taxpayer-funded quango, refused to hand over £2.5m to help open a world-class welding college on the banks of the Clyde. The snub was caused by a longstanding Nationalist policy of refusing to allow public money to be spent on anything it classes as "munitions". The UK Government later announced it would instead make up the funding shortfall if SNP ministers continue to refuse to back the scheme, which is supported by British aerospace giant Rolls-Royce. John Healey, the UK Defence Secretary, accused John Swinney's Government of engaging in "student union politics".
The National
09-07-2025
- Business
- The National
Ferguson Marine signs warship parts contract with BAE Systems
Chiefs at the Scottish Government-owned shipyard in Port Glasgow said the contract is 'an important development' after a committee of MSPs warned last week it needed urgent investment. Ferguson will fabricate three sections of HMS Birmingham, one of the Royal Navy's Type 26 frigates, at Port Glasgow, with steel cutting expected to commence imminently as the shipyard is ready to begin manufacturing. Each ship consists of nearly 60 structural units, with the three assembled at Ferguson's, then taken to BAE's Govan yard in Glasgow, where the warship is being assembled. READ MORE: SNP urge Rachel Reeves not to 'clobber' Scots with cuts to Isa tax-free allowance The warship will then enter the water and will be moved to the Scotstoun shipyard for systems testing and commissioning. The Type 26 programme, currently being delivered by BAE Systems, will provide the Royal Navy with 'the most advanced anti-submarine warfare capability available'. Graeme Thomson, CEO of Ferguson Marine, said the contract represents an 'important opportunity' to grow the skills of its workforce in a bid to secure further investments. He said: 'This contract is a significant step for Ferguson Marine and will enable us to play a role in enhancing the UK's world class maritime capability. 'In recent years Ferguson Marine has been working with BAE Systems, and as the last commercial shipbuilder on the Clyde, we are uniquely positioned to act as an extension of the important work happening under the Type 26 programme. 'As we seek to add to our book of orders, this proves the ability of our skilled workforce to secure new business. We are committed to expanding our experience, with this representing an important opportunity to grow the skill of the younger members of our workforce, to win future commercial contracts in this and related markets.' (Image: Ferguson Marine) The Port Glasgow yard recently missed out on a government-funded order for seven small CalMac ferries which went to a Polish shipyard instead. The announcement of the contract comes after a parliamentary report warned urgent investment is needed to secure Ferguson Marine shipyard's future. Last week, Holyrood's Public Audit Committee highlighted multiple and repeated failings at the Port Glasgow site, including leadership and board instability, inadequate internal audits, serious weaknesses in contractor oversight, and governance failures around exit packages for senior staff. MSPs found these issues, along with delays and high-cost overruns in the building of the CalMac ferries Glen Sannox and Glen Rosa, have caused significant reputational damage to the yard. However, Ferguson Marine said it is 'committed to continuing to develop its workforce and maintaining Clyde-built skills' through its apprenticeship programme while progressing the delivery of Glen Rosa. Bosses at the yard also confirmed plans to invest £14.2 million in upgrades using Scottish Government funding to invest in modernising its infrastructure and equipment. Deputy First Minister Kate Forbes said the contract positively demonstrates the shipyard's capabilities and reiterated that securing new business for Ferguson's is 'vital' for its longevity. (Image: Jane Barlow/PA Wire) She said: 'This contract award is a positive demonstration of the shipyard's capabilities, skills and ability to win work in a commercial playing field, and most importantly, the workers at Ferguson Marine. 'The Scottish Government's decision to take Ferguson Marine into public ownership saved the last commercial shipyard on the Clyde and we continue to ensure the long-term future of the Yard and the workforce, with investment of up to £14.2m in the yard over the next two years in order to help it modernise and secure further future business. 'Securing new business for the Ferguson Marine Yard has always been vital for the Scottish Government, which is why this contract is so welcome. I sincerely hope that the business's future commercial strategy, which is being spearheaded by a new CEO, will enable Ferguson Marine to win new business in its target markets.' Simon Lister, managing director of BAE Systems' Naval Ships Business said: 'BAE Systems has a productive relationship with Ferguson Marine, who are a key supplier of structural steelwork on the Clyde and have built two units for the Type 26 programme. 'This award strengthens our relationship and their continued involvement in the programme.'
