Two suitors show interest in Govan

Two potential bidders have emerged for the Govan shipyard in Glasgow, which has been put up for sale by Kvaerner following the Norwegian group’s exit from shipbuilding. GEC’s Marconi Marine subsidiary has confirmed its interest in buying the yard, while Tyneside shipbuilder Swan Hunter is expected to submit a formal bid in the next few […]

Two potential bidders have emerged for the Govan shipyard in Glasgow, which has been put up for sale by Kvaerner following the Norwegian group’s exit from shipbuilding.

GEC’s Marconi Marine subsidiary has confirmed its interest in buying the yard, while Tyneside shipbuilder Swan Hunter is expected to submit a formal bid in the next few weeks.

GEC is holding talks with Kvaerner about transferring MoD work on two oil replenishment ships from Marconi Marine’s Barrow shipyard to Govan. This would make up for the shortfall in Govan’s orders, which will run out in July, and would keep the 1,200 workforce employed for the next 18 months.

A GEC spokesman said: `Under the right commercial circumstances the yard might be useful to us. We are also keen to avoid another strong competitor emerging in this business.’