Ferguson shipyard to go into administration next week
The company behind the yard has served its notice of intent to begin the administration process.
Directors of Ferguson Marine Engineering, the firm behind Ferguson's shipyard in Port Glasgow, have begun the process of going into administration.
The company has served its notice of intent to go into administration next week.
The news comes after a long running dispute between the firm and the Scottish Government over the construction of two Calmac ferries.
The government say that they remain committed to ensuring the jobs of the yard's 350 workers and the completion of all vessels under construction remains their number one priority.
A Scottish Government spokesperson said: "Our priority remains to ensure the completion of the vessels under construction, secure jobs for the workforce and protect the future of shipbuilding at the site.
"We have been working to secure a future for the shipyard for two years, and it is disappointing that we have not been able to reach a commercial solution with CBC that would have prevented administrators becoming involved.
"We appreciate that this will be a concerning time for the workforce, their families and the local community, and we would like to reassure them that we are committed to maintaining the jobs on the site and building a secure future for the yard and its workforce.
"We have been working closely with trades unions representatives throughout this process, and we will continue to do so in the coming days and weeks."
Gerry Marshall, CEO, Ferguson Marine Engineering Limited Statement said: "It is with great regret and disappointment that the Directors of Ferguson Marine Engineering Limited have served notice to appoint an administrator to the Company.
"This decision has not been taken lightly, but the Directors do not consider there to be any other options in the current circumstances.
"However, the Directors will continue to support the Shareholder and the Scottish Government to realise a positive outcome for the business and its employees.
Clyde Blowers Capital said: "It is with great regret and disappointment that Clyde Blowers Capital ('CBC') notes that the Directors of Ferguson Marine Engineering Limited have begun the process of placing the business into administration.
"We understand that this decision has not been taken lightly and is fundamentally due to CMAL and the Scottish Government's inability to find a resolution to the additional costs encountered during the build of the two prototype LNG dual-fuelled ferries.
"As shareholder we have provided a number of viable proposals to avoid the process of administration and save the jobs of 350 employees, however CMAL and the Scottish Government have consistently refused to participate in productive discussions, leaving the directors of Ferguson Marine Engineering Limited with no other options given the circumstances they are faced with."