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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.