Ferguson shipyard loaned £30m to diversify business

The Scottish government has loaned £30m to the shipyard by the Scottish government

A lower Clyde shipyard - rescued from administration four years ago - has been given a £30m loan by the Scottish government.

The loan is to help Ferguson Shipyard in Port Glasgow diversify its business and gain new contracts.

Saved by businessman Jim McColl in 2014, the yard has been building ferries for Caledonian MacBrayne.

The loan will allow the yard to bid for work repairing and servicing ships, and decommissioning oil platforms.

The Scottish government wants to support commercial shipbuilding by providing working capital, alongside investment from Clyde Blowers Capital, to help Ferguson Marine Engineering Limited (FMEL) diversify its business.

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."