FERGUSON’S shipyard, which was saved by businessman Jim McColl last year, has won a major Scottish government contract to build two new ferries, it has been confirmed.
The deal to build the ferries, which is worth about £97million, was finalised yesterday and announced at the SNP’s annual conference in Aberdeen by Transport Minister Derek McKay.
Ferguson Marine Engineering Ltd (FMEL), as it is now called, has gone from strength to strength since it was bought by McColl of Clyde Blowers Capital last September.
It had been announced that Ferguson was the preferred bidder back in August. But contracts have only now been formally agreed by the Scottish Government and the owners of the yard in Port Glasgow, a move which will secure 150 jobs.
It is expected that construction of the two large Hebridean ferries will start in 2016, with the first of the ferries in operation two years later.
Derek Mackay, Minister for Transport and Islands, said: “I’m delighted this contract has been formally awarded to Ferguson Marine Engineering Limited and the shipyard can now start work on these new ferries, the largest commercial vessels to be built on the Clyde since 2001.
“The award of this contract will see FMEL’s 150-strong workforce retained and more staff taken on, underlining the Scottish Government’s commitment to creating the vital jobs needed to boost local economies and help stimulate growth across Scotland.
“I once again congratulate FMEL on proving Scottish shipbuilding can succeed in a competitive market, and I look forward to seeing these new vessels join the West Coast ferry fleet in the future.”
Tom Docherty, chief executive, CMAL said: “We are delighted to sign the shipbuilding contracts, securing FMEL as the contractor to build the two newest additions to our fleet.”
Ferguson’s was originally formed in 1902 employing 77 staff and secured its first contract for two steam tugs shortly after that.
However, in the 21st century it found itself in trouble, with rounds of redundancy announced and rumours of its imminent closure circulating.
It went bust in August 2014 but quickly attracted bids from three potential buyers.
McColl, who secured the deal, told the National last month that he was attracted to the Fergusons for “sentimental reasons” but claimed there were also sound business opportunities underpinning the buyout.
He also said that he planned to turn the dying Clyde shipyard into a 21st-century business within a year, with ambitious plans for 1,300 jobs and £65 million of investment.
As well as the new ferry order, the firm is currently building a hybrid electric/diesel ferry for Caledonian MacBrayne , diversifying into renewables and has plans to take on more repair work.
When Ferguson’s was announced as a preferred bidder Inverclyde SNP MP Ronnie Cowan told The National that it was “just reward” for the investment McColl has made in Ferguson Marine and the dedication of his highly-skilled staff. “Once again Inverclyde has a world-class ship-building concern,” he said at the time. “Ferguson Marine have turned around a failing business and the outlook is looking good.
“I have every confidence in both the management and workforce of Ferguson Marine. With the right sort of backing a range of engineering opportunities could be undertaken.
“This announcement is just reward for the investment that has been made so far and hopefully a signpost to a continuing involvement in the local community.”
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