FERGUSON Marine has signed a contract with the defence firm BAE Systems to fabricate three structural parts for a Royal Navy warship.
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.
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.”
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 £14.2m 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.
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.”
