Engineering plant shuts..
Government to nationalise Ferguson as Cummins axes jobs
Ferguson Marine: private offers fall short
The Scottish Government has rejected all offers to acquire the Ferguson Marine shipyard and begun legal discussion with administrators to take it into public ownership.
Administrators at Deloitte have concluded that three indicative offers for the business received from commercial parties are either not capable of being executed or do not represent a better outcome for creditors than a sale of the business to the Scottish Government.
Final terms of a sale are now expected to be concluded within the next four weeks.
Employees at the Inverclyde yard were informed of the latest position today.
Economy Secretary Derek Mackay said: We have always been clear that we want to complete the vessels, secure jobs and give the yard a future. Administrators have concluded that despite other bids being submitted for the yard, the Scottish Government’s offer presents the best outcome for creditors.
“We are working with the administrators to bring the yard into public ownership. I will be there on Monday to meet with the excellent workforce and reiterate the Scottish Government’s commitment to achieving the best possible outcome for the yard and its employees.
“While there is still more to be done, our actions have ensured that there will be a future for Fergusons.”
Greenock and Inverclyde SNP MSP Stuart McMillan said: “This is fantastic news for the local area, the workforce and the communities that will benefit from these two new ferries.
“It also poses a huge opportunity to seek further investment in the local area and for more vessels to be built at the yard.
“No one wanted this situation to develop as it has – but thanks to our Finance Secretary Derek Mackay, these ferries will be built, jobs have been saved, and ship building has a future in Port Glasgow.”
Cummins to close plant
As workers in Greenock celebrated the Ferguson yard being saved, the Unite union called for government intervention after Cummins UK announced the closure of its manufacturing operations in Cumbernauld with the work expected to be transferred to England.
The decision, which will affect about 130 workers, has been blamed on ‘market conditions’ and capital investment required in the factory.
Cummins UK specialises in the distribution of Cummins engines and generators in operation for various industries including marine, retail, oil and gas, and telecommunications.
Trade union Unite has called for urgent intervention by the Scottish Government, Scottish Enterprise and North Lanarkshire Council to work with Cummins UK and Unite in order to explore opportunities which can keep the factory open.
Unite believes these options should include financial support through regional selective assistance grants and measures to reduce costs which could assist the financial position of the factory.
Unite regional industrial officer, Pat McIlvogue, said: “The announcement by Cummins to close its operations and to transfer the work to England is a bitter pill to swallow for the workforce.
“Around 130 skilled manufacturing jobs could be lost unless the Scottish Government, North Lanarkshire Council and all interested parties urgently meet to explore every avenue to keep these jobs in Cumbernauld. Unite will do everything we can to ensure that this happens and we will provide every assistance to the workers during this period of uncertainty. ”