£30m loan designed to help Clyde shipyard diversify

The Scottish Government has announced that it is to support commercial shipbuilding in Scotland with a £30 million loan to provide working capital, alongside investment from Clyde Blowers Capital, to help Ferguson Marine Engineering Limited, a commercial shipbuilder and marine engineering firm operating on the Clyde, to diversify its business.

The loan will aim to enable the shipyard to target investment in repair and maintenance capability and to win business opportunities in areas like ship servicing and repair, low carbon marine projects and decommissioning work.

Ferguson Marine Engineering was brought out of administration by Clyde Blowers Capital in 2014, and subsequently won the contracts for design and build of the vessels known as hulls 801 (MV Glen Sannox) and 802, in 2015 and delivered the MV Catriona in 2016.

The dual fuel ferries project has boosted commercial shipbuilding on the Clyde, securing existing jobs in the Port Glasgow and Inverclyde area, and creating additional employment opportunities, including new apprenticeships.

Finance Secretary Derek Mackay said: “Commercial shipbuilding on the Clyde has a long and proud history, and it is essential that we continue to support this important industry and help it reach its full potential.

“This investment allows FMEL to further diversify their business by moving into innovative areas, like low-carbon marine projects, and target decommissioning work.

“The loan is a strategic investment in our industrial capability as both the marine engineering sector and commercial shipbuilding have vital roles to play in Scotland’s future.”