First Minister Nicola Sturgeon has named Ferguson Marine Engineering Limited (FMEL) as the preferred bidder for a £97 million contract to build two ferries.

The deal, once finalised, will see Ferguson build two ferries for the Caledonian Maritime Assets Ltd’s (CMAL) fleet, creating new jobs at the shipyard and securing employment for a workforce of around 150 people.

CMAL will confirm the contract award in due course, subject to agreement on final terms and conditions.

FMEL is to undertake the detailed design and construction work of new vessels, as well as their testing, equipping, launching and delivery.

The first ferry is expected to be delivered in early 2018, with the second vessel following a few months later.

Ms Sturgeon said: “This is an excellent result for Ferguson Marine Engineering Limited and I am delighted to name them as preferred tenderer for the contract to build two new ferries, the largest commercial vessels to be built on the Clyde since 2001.

“This contract will see the 150-strong workforce retained and more staff taken on at the shipyard, underlining our commitment to creating the vital jobs needed to boost local economies and help stimulate growth across Scotland.

“The Scottish Government is committed to supporting ferry users around Scotland by providing safe and reliable services, and this is the latest step to ensuring we have a fleet that continues to deliver for the communities that depend on it.”

Transport minister Derek Mackay added: “This is a significant investment that proves Scottish shipbuilding can succeed in a competitive market, with the FMEL team submitting the highest quality bid that offered best value for money.

“The vessels themselves will be ‘dual-fuel ferries’, allowing them to use cleaner fuel and future-proofing them for the advent of tighter regulations around sulphur emissions. This announcement will strengthen our ferry fleet, ensuring they will be able to benefit the communities that need them for decades to come.”