Latest news with #ScottishGovernment-owned
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.'
STV News
09-07-2025
- Business
- STV News
Ferguson Marine secures BAE Systems contract for HMS Birmingham work
Ferguson Marine has signed a contract with BAE Systems to fabricate three structural parts for HMS Birmingham as part of the Type 26 programme. Chiefs at the Scottish Government-owned shipyard in Port Glasgow say the contract is 'an important development' as they aim to secure new work. Steel cutting on the three components is expected to commence imminently with the shipyard ready to begin manufacturing. The Type 26 programme, currently being delivered by BAE Systems, will provide the Royal Navy with 'the most advanced anti-submarine warfare capability available', a statement read. Construction is underway for the first five of eight Type 26 frigates with the ships at various stages of build. Muckle Media Alan Quinn and David Dishon STV News Type 26 frigate HMS Cardiff leaving the Govan yards 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. 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.' It comes after a parliamentary report warned urgent investment is needed to secure Ferguson Marine shipyard's future. 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 extremely high cost overruns in the building of Glen Sannox and Glen Rosa, have caused significant reputational damage to the yard. iStock Glasgow, Scotland – Side view of the progress on a ship at a BAE Systems shipbuilding yard located in Govan on the River Clyde. The building of the ferries has run years behind schedule and multiple times over budget. The two ships, which were meant to be delivered in 2018, will now cost an estimated £460m – up from the original price tag of £97m. In April, the shipyard's financial officer David Dishon told ministers that a ten-year business strategy will be set out to plot its course for the future. In the meantime, 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. Chiefs also confirmed plans to invest £14.2m in capital upgrades using Scottish Government funding to modernise infrastructure and equipment. STV News Ferguson Marine shipyard 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.' Deputy First Minister Kate Forbes 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.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
Scotsman
07-07-2025
- General
- Scotsman
CalMac seeks millions in compensation over troubled Caledonian Isles ferry after 18 months of repairs
CalMac is seeking compensation over the Caledonian Isles ferry, which remains out of service after 18 months of repairs. Sign up for the latest news and analysis about Scottish transport Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Ferry operator CalMac is seeking millions of pounds in compensation for one of its vessels that still remains out of action after 18 months. The Caledonian Isles, which services the Arran route, has been under repair since January last year. Advertisement Hide Ad Advertisement Hide Ad John Devlin/The Scotsman Scottish Government-owned CalMac has reportedly lodged a compensation claim over the deformation of the ship's hull. The compensation is being sought from Merseyside shipbuilding and repair company Cammell Laird, which carried out the first phase of repair work. The repair bill has now reached £10.8 million - the equivalent of a quarter of last year's maintenance budget for the entire CalMac fleet. Advertisement Hide Ad Advertisement Hide Ad The Scotsman revealed late last year following a behind-the-scenes tour with CalMac of the Caledonian Isles that areas of the 'frame' or skeleton of the 31-year-old ship were found to have 'deformed' by some 2cm due to stresses on its hull. John Devlin/The Scotsman The fault has also affected other key parts of the ship - the engine gearbox and the stern tube bearings, where the propellers meet the hull. Scottish Government-owned CalMac at the time of the tour likened it to squeezing a pot of yogurt that distorted the shape of the contents. Advertisement Hide Ad Advertisement Hide Ad Cammell Laird has declined to comment on the compensation claim, the BBC reports. In a statement, a CalMac spokesman said: 'Following an investigation into the cause of the hull deformity, action is under way to recover costs. 'As this is commercially sensitive and subject to legal proceedings, we cannot comment further.' Problems with Caledonian Isles were first found in January last year when annual maintenance inspections showed extensive steel corrosion. Advertisement Hide Ad Advertisement Hide Ad Details of the compensation claim have been revealed with SNP ministers having been accused of 'causing chaos' for islanders, with more than 10,000 ferry journeys cancelled due to technical failures since 2023. The 1,000-passenger Caledonian Isles had been originally due to return to carrying passengers last month, but CalMac has been forced to make further contingency plans after a gearbox issue was discovered. The long-running saga of the Caledonian Isles is yet another issue which has hit transport to Scotland's west coast islands in recent years, along with the major delays and cost overruns to two ferries being built at the Ferguson Marine shipyard in Port Glasgow. The Glen Sannox entered service in January, while the Glen Rosa is not expected until next year, with projected costs rising from £97 million when the contract was signed to more than £400 million. Advertisement Hide Ad Advertisement Hide Ad The construction of the CalMac ferry MV Glen Rosa has been continually delayed and cost much more than expected (Picture: John Devlin) The loss of the Caledonian Isles has also meant there have been no sailings from Ardrossan in months. While the MV Isle of Arran has been re-shuffled to take over the route from Monday for the next two weeks, both the Glen Sannox and the Glen Rosa are too big for the port in the North Ayrshire town and as such have been sailing from Troon, further down the coast. Locals fear the impact of losing the ferry service on the local economy, while islanders on Arran have also expressed concerns.
Scotsman
04-07-2025
- Business
- Scotsman
Red Arrows: Next generation of jets could be built in Scotland at Prestwick Airport
Prestwick Airport has been selected as the preferred site to build the next generation of Red Arrows jets in a decision branded a 'once-in-a-generation opportunity'. Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Aviation company Aeralis is in partnership talks with the Scottish Government-owned airport, situated in central Ayrshire, to assemble its aircraft at the site. If secured, it would mean the next squadron of Red Arrows being built in Scotland in a deal that would deliver hundreds of jobs north of the Border. Advertisement Hide Ad Advertisement Hide Ad The company is the only one in the UK that is designing and building a manned light jet aircraft, which could equip the RAF's display team, or be sold on the international export market. Red Arrows flypast after the National Service of Thanksgiving and Dedication for King Charles III and Queen Camilla, and the presentation of the Honours of Scotland, at St Giles' Cathedral in Edinburgh. Picture:The Red Arrows fly Hawk T1 jets which are several decades old and due to be retired in 2030. Aeralis says components for the replacement jets would be built around the UK before being assembled at Prestwick, where the aircraft would take their first flight. The airport was bought by the Government for £1 in 2013, though officials hope to sell it back to the private sector. Advertisement Hide Ad Advertisement Hide Ad Ian Forgie, chief executive of Prestwick Airport, said: 'We are tremendously excited about this agreement with Aeralis and the opportunity it brings to generate jobs, apprenticeships, investment and innovation in the Prestwick area. 'We look forward to working with Aeralis to make this happen.' Scottish Labour MP for Central Ayrshire Alan Gemmell said: 'I am proud to support Aeralis's decision to commit to Prestwick. 'This is a once-in-a-generation opportunity to bring jet manufacturing back to Prestwick and will mean hundreds of well-paying jobs. Advertisement Hide Ad Advertisement Hide Ad 'The Red Arrows are a global symbol of what's best about our country. I couldn't be happier if they become Scottish as well as British.' A commitment from the UK government to the aircraft is needed to progress plans, Aeralis said. If approved, company bosses said the assembly plans "will clearly return Scotland to its deserved place as a first-tier aviation nation". The existing jets, based at RAF Waddington in Lincolnshire, cost almost £80,000 a day to run. Advertisement Hide Ad Advertisement Hide Ad The squadron regularly visits Scotland, performing aerial displays coinciding with the Royal Edinburgh Military Tattoo in August, as well as shows from the northern base of RAF Lossiemouth in Moray. The RAF's aerobatic team was in Scotland last month. Tristan Crawford, chief executive of Aeralis, said: 'Prestwick represents an ideal site for our UK final assembly line. 'The airport has a strong aviation legacy particularly in whole aircraft manufacture, as well as excellent local aerospace manufacturing and MRO [maintenance, repair, overhaul] resources, and an operating model well suited to supporting new aerospace programmes. 'This will provide Aeralis with tremendous operating capability for building, testing and industrialising the new aircraft, meaning Prestwick is the perfect choice for Aeralis.' Advertisement Hide Ad Advertisement Hide Ad A Scottish Government spokesperson said: 'As home to Scotland's largest aerospace cluster, Prestwick is an ideal place to locate new advanced manufacturing facilities for the aviation sector. 'News of this potential investment, and ongoing discussions between Aeralis and Glasgow Prestwick Airport to finalise an agreement for the production of training aircraft, are welcome.' The contact would be a massive economic boost for Glasgow Prestwick and provide an added incentive for potential bidders. The Scottish Government told The Scotsman in May the sale process for the nationalised airport was "at its most intensive", prompting Scottish Conservatives Central Scotland MSP Graham Simpson to predict a deal 'could be very close'. Advertisement Hide Ad Advertisement Hide Ad Ryanair is the Prestwick's sole passenger airline and also has a significant aircraft maintenance base there, while the airport also handles cargo flights.
