Shipyard given £30mil loan to diversify business

A Clyde shipyard is being given a £30 million Scottish Government loan to help diversify its business.

The loan will help Ferguson Marine Engineering Limited (FMEL) target investment in repair and maintenance capability and win business opportunities in areas such as ship servicing and repair, low carbon marine projects and decommissioning work.

The Scottish Government is issuing the loan to provide working capital, alongside investment from Clyde Blowers Capital.

FMEL was saved from administration by Clyde Blowers Capital in 2014.

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.'