McColl unveils jobs hope for shipyard
Workforce at shipyard could top 400 if ferry contracts won
ENGINEERING tycoon Jim McColl hopes to bolster the workforce of Ferguson shipyard in Port Glasgow.
Mr McColl, whose Clyde Blowers Capital private equity firm rescued the firm in September, is hoping the workforce will soon rise to more than 400 staff. The yard will hear next month if its tender to build two 328ft ferries for Caledonian Maritime Assets Limited has been successful.
JIM McColl has raised hopes the workforce at the Ferguson shipyard in Inverclyde rescued by Clyde Blowers Capital will rise to around 400 staff, revealing the business has been “inundated” with inquiries since it moved into new ownership.
The engineering tycoon, whose private equity business bought Scotland’s last remaining commercial shipbuilder out of administration in September, said he will know by next month whether the yard has successfully tendered for two 100 metre ferries from Caledonian Maritime Assets Limited.
At the same time, he highlighted the prospect of Clyde Blowers Capital making acquisitions in the energy sector as the lower price of oil brings opportunities to the table.
Ferguson Marine Engineering is currently on track to increase its workforce from 80 to 120 by spring after winning a £12.3 million hybrid ferry contract from CMAL.
The current workforce includes the yard’s original 70-strong team, boosted by a new senior management team, including naval architects.
And Mr McColl revealed that number could rise to as much as 400 should Ferguson win orders for two further ferries from Caledonian Maritime Assets. The successful bidder will be announced in the coming weeks.
Mr McColl said Ferguson was looking to carry out steel fabrication work for the vessels at a separate facility at Renfrew, and he revealed the company could be interested in acquiring the current BAE Systems site in Govan, should the defence giant deem it to be surplus to requirements.
Speaking at a Glasgow Chamber of Commerce event, Mr McColl said: “We’re bidding for two 100 metre ferries, but that is on the limit of what we build up there. These are big vessels.
“We’ve already been looking at facilities in Renfrew to back the fabrication up so that we can sail fabricated parts down the river, down to the yard to be put together, because this would be quite a workload.
“With the existing ferry, we are going to have to increase the workforce to about 120 from the 80 we have just now.
“We have got a clear vision for that business. We have been inundated by inquiries for ships – you wouldn’t believe the demand.”
Clyde Blowers Capital had set aside £4million to invest in the shipbuilder, around half of which was used to buy the business. The other 50 per cent was needed to fund immediate losses and working capital. A further £3m to £4m has since been lined up to build new facilities, acquire new cranes and other manu- facturing infrastructure. Mr McColl underlined the opportunity for Ferguson in manufacturing specialist support vessels for the oil and gas sector, which he said will be the major focus for the business.
Ferguson is working on a project with a company that deploys robots or ROVs to inspect subsea work and carry out repairs. That company has designed a new generation vessel that is not as costly to deploy – and something Ferguson could build.
Mr McColl noted: “These inspections have to keep going, it doesn’t matter what the price of oil is.
“Even though you hear about the downturn, there are opportunities, and there is an abundance of them in the shipping area.
“We just have to work out how
to make a profit doing it.”
Dredgers, survey vessels and ocean-going tugs are among the type of vessels Ferguson is targeting, Mr McColl said, as well as explorer yachts. He also said the firm is manufacturing structures for the offshore wind and oil industries.
Mr McColl said: “We’ve got 40 orders going through the shipyard just now – one of them is a ship. The rest are all structures for offshore wind or oil.
“We have been quickly trying to get that kind of work in as well to complement the work we are doing on a ship.”
Ferguson will be the last acquisition made by Clyde Blowers Capital’s current fund. The firm is now raising capital for its next fund, which has a £500m target. Asked if the lower price of oil means there are deals to be done in the oil and gas sector, Mr McColl said: “I’m quite excited about the opportunities just now in oil and gas, not that I’m happy with the way it has come about.
“But when companies coming up against a tough time, that’s often when opportunities arise, to put money in and help grow the thing back up when the recovery comes.
“The oil price might not come back up to 100 (dollars a barrel) but I’m sure it will come back up very close, probably (in) 18 months, two years. We are already seeing a few in Aberdeen just now.”
Mr McColl added: “The yard was a fantastic opportunity to rebuild commercial shipbuilding on the Clyde. The skills are fantastic and I’m glad we have the opportunity to put them to work again.”