This item was published during the term of a previous administration that ended in April 2007
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Investment for Glasgow shipyards
30/08/2005
A multi-million pound investment package for BAE Systems' Govan and Scotstoun shipyards, supported by grant assistance from the Executive is expected to create and safeguard hundreds of jobs.
Investment of £18.5 million from BAE Systems Naval Ships, supported by a government Regional Selective Assistance (RSA) grant of £4.1 million, is aimed at creating 401 new jobs and safeguarding 205 existing jobs over the next 18 months.
The plans were announced today during a visit by Enterprise Minister Nicol Stephen and are designed to improve the longer term competitive position of the yards across a range of naval work.
Mr Stephen said:
"BAE Systems' Glasgow yards have a tradition of excellence in marine engineering.
"I welcome the company's commitment to the future of the yards and to their workforce.
"I am delighted we can play a part in helping to grow the business here through an RSA offer of £4.1 million. This will help to create 400 high quality manufacturing jobs and sustain more than 200 existing posts."
Vic Emery, Managing Director, BAE Systems Naval Ships said:
"The investments that we are making in our facilities on the Clyde, with the financial support of the Scottish Executive, will make us more competitive and better positioned to win future naval contracts, both for the UK and Export customers.
"We are proud of our long heritage in shipbuilding on the Clyde and confident for our future".
BAE Systems Naval Ships is a warship prime contractor and systems integrator for the UK Ministry of Defence and selected export customers. The company provides a complete warship capability, from generating initial concepts through to evolving in-service support solutions.
BAE Systems Naval Ships has facilities in Scotstoun and Govan in Glasgow and in Filton, near Bristol. The company employs approximately 3000 people and had a turnover of approximately £350 million in 2004.
The Glasgow investment will allow extensive upgrading and modernisation at the docks and deep water berth facility, as well as the construction of additional office and training accommodation
Regional Selective Assistance (RSA) is the main national scheme of financial assistance to industry. It provides discretionary grants for investment projects that will create or safeguard jobs in Assisted Areas - areas designated for regional aid under European Community law. The scheme is administered by the RSA Scotland Unit of the Scottish Executive.
Payments of RSA are made in instalments, typically over several years, provided that job and project expenditure targets are met. The amount of grant offered, therefore, represent the maximum grant potentially payable if a project is satisfactorily completed, and not the amount actually paid to date.
All job numbers are based on firms' forecast figures at the time a grant is offered, and are subject to change depending on future economic conditions and other factors affecting the business concerned.