Ferguson Marine secures work on HMS Birmingham with BAE Systems

The deal for the Port Glasgow yard is for part of the Type 26 frigates programme that is being delivered by BAE Systems for the Royal Navy.

The components will be for HMS Birmingham, the fourth vessel in the programme.

The £840m warship's primary role will be to conduct advanced anti-submarine warfare missions while supporting air defence and general purpose operations.

Ferguson Marine say steel cutting to commence ‘imminently’

Ferguson Marine, which began operating in 1903, is the last remaining commercial shipyard in Scotland and the only shipbuilder left on the lower Clyde.

It is expected that steel cutting will commence imminently as the shipyard stands ready to commence manufacturing.

Graeme Thomson, chief executive of Ferguson Marine, 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.”

Construction ‘under way’ for first five frigates

Construction is already under way for the first five of eight Type 26 frigates with the ships at various stages of build.

Each ship consists of nearly 60 structural units which are integrated at BAE Systems’ Govan shipyard before entering the water. They then move to the Scotstoun shipyard for systems testing and commissioning.

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.”

The news comes after a cross-party Holyrood committee published a damning report into the ferries saga and the future of the yard earlier this week.

Holyrood’s Public Audit Committee found urgent investment is needed to secure the future of the state-owned shipyard.

The committee highlighted multiple and repeated failings at the 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 extremely high cost overruns in the building of the Glen Sannox and Glen Rosa ferries, have caused significant reputational damage to the yard.

The committee said urgent investment is now needed to make sure it can be competitive once again.

The Scottish Government bought Ferguson Marine in 2019 after it was placed into administration.

But it has had problems ever since, with the building of the Glen Sannox and Glen Rosa years behind schedule and multiple times over budget.

The two ships, which were meant to be delivered in 2018, will now cost an estimated £460 million – up from the original price tag of £97 million.

The Glen Sannox set sail near the end of last year but the Glen Rosa has been delayed again until early 2026.