The Scottish Government is taking significant steps to secure Ferguson Marine Port Glasgow’s (FMPG) future by pursuing new work opportunities, including potential further involvement in the UK’s Type 26 Frigate programme.
This is part of what the Scottish Government call a broader strategy to build a sustainable future for the shipyard, which has played a vital role in Scottish shipbuilding.
Ministers have collaborated with FMPG on a long-term business plan to improve productivity and secure new contracts. As the construction of the Glen Sannox and Glen Rosa nears completion, the Scottish Government has committed up to £14.2 million over the next two years, contingent on the business plan passing detailed legal analysis and independent financial and commercial assessments expected to conclude by autumn, according to a press release.
In a recent statement, Deputy First Minister Kate Forbes highlighted the importance of productivity improvements and securing commercial contracts to ensure the shipyard’s viability. “Now that Glen Sannox is approaching handover, our focus is on the next phase for FMPG’s future. That requires change and investment to target new opportunities,” she said.
“The Board has developed a business plan that it believes has the potential to secure a competitive future. Subject to independent legal and commercial analysis, the Scottish Government will provide significant new funding to support the yard’s modernisation and improve productivity.”
Discussions with BAE Systems about FMPG’s potential involvement in the Type 26 Frigate programme are in the final stages. Securing this work is seen as a crucial component of the shipyard’s long-term strategy. Forbes noted, “Additional funding goes hand in hand with winning new commercial contracts, and it is extremely good news that talks with BAE Systems to secure further work have reached this advanced stage.”
Earlier this year, Ferguson Marine completed hull sections for the Type 26 frigate programme. These sections were transported from Port Glasgow to BAE Systems’ facility in Govan. This task was carried out by Coastworks using their newly introduced CW-9 barge. The outsourcing of steelwork fabrication for the Type 26 programme to UK shipyards like Ferguson Marine is part of a deliberate effort to distribute workload effectively and maintain project timelines.
BAE Systems stated, “We have outsourced steelwork fabrication for a limited number of units to support delivery of the Type 26 programme. This is typical for a programme of this scale and offers an opportunity for UK companies to play their part on this national endeavour.”
However, the Scottish Government has decided against a direct award of the small vessels phase one contract to FMPG due to substantial risks and uncertainties under the UK Subsidy Control Act.
Instead, the government will focus on legally supporting the yard and workforce to ensure a sustainable future. Forbes added, “When the Scottish Government stepped in to save FMPG in 2019, we did so to preserve jobs and develop the next generation of shipbuilders on the River Clyde. That commitment remains unwavering. The company will of course be able to consider a bid, either individually or in partnership with other yards, but its long-term future depends on winning work on a competitive basis.”
A spokesperson for BAE Systems said:
“BAE Systems has a good working relationship with Ferguson Marine, which is a key local supplier of structural steelwork and has built two units for the Type 26 programme. 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.”
Good to see a British state/regional government investing in manufacturing.
Perhaps if NI or one of the English regions took such a stance our ship building industry would be in a better place.
Problem is that without an order pipeline it is a bottomless pit?
I was born in Scotland. Even I can see a dead duck when I see one.
Yes it strikes me that this yard is not viable but government keep propping it up. If this were an English yard would it get the same help? Come to think of it most of Scottish ship building is propped up by navy orders. It would be good to see Scotland have commercial success from non-navy global contracts. However I recall that this company could not even build some ferries…..
The main problem was these two ferries were so badly designed they continually had to make alterations, failing safety inspections, even having to add new stairwells as fire escapes and on top of that the new untested hybrid engines were a disaster. All this caused delays that took years to rectify.
if it stuck to simple designs as before they’d be OK… even Calmac are in a mess because of Ferguson M.
It takes some stupidity to ‘design’ a ferry and not get the emergency exits right and agreed before you build. There are many good firms that can design to class rules! They are not Top Secret!
That is the ultimate example of a mess up.
The LPG engines are quite common in the Nordics – the technology is done. I’ve no idea why it was such a performance to get that tech onto a ferry other than incompetence.
There’s nothing new or untested about these engines. They’ve been in use for many years across the world. It’s the yard that had never had experience of them. They’re Wartsila engines, the whole concept is nothing new. The additional stairwells were a legal requirement. Clearly someone didn’t read the regulations properly, again, these regulations are not new and had they been adhered to in the early stages of the build, that particular issue would never have occurred. There are/should be people employed by the yard to ensure this sort of mistake doesn’t happen. I agree though, the whole LNG system… Read more »
I would comment but Police Scotland might think it was hate speech.
I hope they will repeal that stupid law. Can you get political asylum in England?
Isn’t there a bit of a chance here to speed-up the T26 build if Ferguson’s can and want to do more? Or even give them other work if that’s also an option? Are they just tied to BAE?
Is this company up to building a warship when they cannot build a ferry….
Maybe not a full ship but they should get better with more practice. Hopefully there’s some opportunities for other yards too.
Ferguson Marine – has played a vital role in Scottish shipbuilding.
What ‘vital role’ ??
Funny the SNP constantly berate Westminister and then go…’please sir can I have more.’
It’s not like we are short of requirements for Scottish ferries, P2000 replacements, the new Border Force cutters, River B1 replacements (if we get them), the three Scottish Marine protection vessels are getting long in the tooth, BAE have already contracted for frigate work, and Babcock is running behind hand and was reportedly getting assemblies built in Poland. That’s just off the top of my head.
Is Fergusons a credible lead for any of these smaller ships, or will it need to spend more time doing bitty work for the bigger players?
Have I missed something or have we completely given up on the T32?
It’s seems to have sort of disappeared a bit…but it’s still in the equipment plan and officially still in the concept phase……
Good one. I hadn’t realised it was 1st April already. The Scottish government and shipbuilding. 🙄
Didn’t ScotGov recently announce that they need several new ferries? Perhaps they could award the contrct to Fergusons instead of a yard in Turkey?
lol who am I kidding, that makes far too much sense.
Two years ago we contacted the Ministry of business innovation in London to offer a commercial build of 32 x 10,000 dwt commercial ships split between the 4 UK yards. We were told it was too advanced. One yard launched a dumb barge!
A Chinese yard was full till 2028
Why on earth would you award a contract to someone who could not deliver on time, it would take 10 years to build new ships ,and come in over budget ,thank you.
Please expand on this – it is interesting?
It would be great to see an increase in T26 build speed. However there doesn’t seem to be any sense of haste from the new government.
The Scots come around with their ‘begging bowl’ yet again.
Wouldn’t be getting anything if they had voted for independence?!!
Hi, other Jon. Not sure why that’s relevant.
It would be bonkers to give them any more RN work or money. This yard is a bottomless money pit. If they took on the manufacture of such a poor design of ferry, more fool them; that enduring pathetic saga shows management inability to undertake due diligence or run anything more complicated than building an Airfix kit.
Many layers of failure here.
Incompetent initial design. Who did that?
CALMAC then ordering the incompetent design. Why who checked it?
Fergies then took on an incompetent design.
Then Fergies incompetently build an incompetent design.
These things are usually a chain of failures.
Why would any sane person award work to Ferguson? There’s A&P Tyne, Appledore, Birkenhead, H&W, Wights,
Or do we just give up and admit that the whole Royal Navy combat ship program is just a life support system for Scottish yards regardless of performance?
Very diplomatic response from BAE. I would be fascinated to see the FAI and NDT reports on the Ferguson sub con work…