Dozens of workers at one of Scotland’s last commercial shipyards were yesterday told they had lost their jobs, as Port Glasgow firm Ferguson Shipbuilders collapsed into administration.
Some 70 workers were made redundant with immediate effect after bosses called in the accountants amid a lack of orders and “increasing pressure” on cash flow.
Joint administrators Blair Nimmo and Tony Friar, of professional services firm KPMG, said they had “no option” but to make the vast majority of the group’s staff redundant while they assess “all available options” including the sale of the Newark Works-based company or its assets.
“The group has experienced significant cash-flow pressure in recent months, and the lack of financial strength has hindered its ability to secure new vessel contracts from its core customer base,” KPMG said.
“Recent attempts to secure investment into the business have proved unsuccessful.”
Mr Nimmo said Ferguson Shipbuilders was a “leading name” in the industry.
“The group’s infrastructure and unique offering has earned it global success in recent years, principally from the building of two “world first” diesel hybrid ferries,” he said.
“However, a lack of significant orders and mounting cash-flow pressure has led to the group’s inability to continue trading.
“We would like to thank staff for their cooperation during this difficult period. We will be working with employees and the relevant Government agencies to ensure that the full range of support is available to all those affected.”
Seven workers have been retained to assist with the administration process.
The 112-year-old company’s work on the MV Hallaig and MV Lochinvar hybrid ferries was last year hailed by Transport Minister Keith Brown.
He said construction of the two low-emission vessels which serve the Skye to Raasay and Tarbert to Portavadie routes respectively, as part of the CalMac fleet encapsulated the Scottish Government’s ambition to invigorate the country’s economy.
The build, for Caledonian Maritime Assets, was supported by funding from the Scottish Government and European Regional Development Fund.
Finance Secretary John Swinney yesterday tweeted about the “very sad news”, and said the Scottish Government would convene a task force alongside Inverclyde Council to “find new opportunities for the yard”.
Most recent accounts filed at Companies House show pre-tax profits of £571,000 for the 12 months to May 2012 a considerable improvement on losses of almost £1.5 million during the previous period.
The group, which includes Newark Joiners and Ferguson-Ailsa, also has expertise in engineering and joinery, and support for materials handling, fluids distribution, system hydraulics, power distribution and management and civil engineering.