The enterprise encountered monetary struggles regardless of being handed £6.2 million in authorities help.
The enterprise had 5 employees and deliberate to make use of 20 extra (Picture: Getty)
All jobs have been misplaced at a British shipbuilding firm after it collapsed into administration. The enterprise was based in 2018 earlier than being given funding by the federal government in a bid to revive the native trade.
It has been confirmed that Coastal Workboats Scotland Restricted (CWS) has appointed directors simply three years after signing a 10-year lease with Stornoway Port Authority within the Outer Hebrides. Throughout that point, it was given £6.2 million in authorities help and a grant value £167,000 from Highlands and Islands Enterprise (HIE). The federal government hoped the enterprise would revive the shipbuilding trade within the city of Stornoway but it surely quickly encountered monetary challenges.
As reported by The Scottish Solar, directors from FRP Advisory blamed “design points and provide chain delays” for its latest collapse. 5 boats at the moment stay unfinished, together with the UK’s first all-electric business workboat.
Coastal Workboats Scotland Restricted employed 5 employees to construct boats. It had additionally deliberate to make use of an extra 20 employees to assist its ongoing initiatives however it will not occur.
Directors FRP Advisory stated: “The corporate operated a ship constructing enterprise from a leased shipyard on Goat Island, Stornoway, Isle of Lewis. On the date of the appointment, it employed a complete of 5 employees and had varied shipbuilding contracts beneath method, together with contracts agreed in early 2022 to construct two Touchdown Utility Vessels with Damen Hardinxveld.”
They added: “In 2022, CWS utilized for a funding grant with Innovate UK to construct a UK-first Digital Touchdown Utility Vessel (E-LUV) – a totally electrical inter-island workboat supported by a shore-powered storage station.
“In November 2023, the corporate signed a 10-year lease with Stornoway Port Authority for its Goat Island premises. Extra contracts have been then secured with Damen Gorinchem in July 2024 to construct two tug vessels.”
The administrator continued: “By September 2024, the corporate was awarded an extra grant from Highlands and Islands Enterprise of £167,000 to buy progressive gear to assist the enterprise develop. The grant was used to fund robotic welding gear to construct and help its E-LUV undertaking.
“In February 2025, after the prices of the E-LUV undertaking elevated, further unsecured funding of £1.6m was agreed with Damen Hardinxveld to help the corporate’s capital place. CWS had commenced a lot of massive shipbuilding contracts since 2022, with further funding together with grants and loans secured to help these contracts.”
FRP added: “The corporate suffered monetary challenges by means of 2025, partially attributable to design points and provide chain delays which impacted progress on vessel construct timescales and positioned appreciable stress on the corporate’s cashflow.”
Directors blamed ‘design points and provide chain delays’ (Picture: Getty)
An HIE spokesperson stated: “We’re conscious of the present scenario at Coastal Workboats and have been in shut contact with the corporate relating to its future.
“We’re additionally working with the directors to assist safe the absolute best consequence for public funds. Discussions are ongoing, and we’re unable to touch upon particular particulars till outcomes are agreed.”
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A Stornoway Port spokesperson stated: “The port is conscious that our tenant, Coastal Workboats Ltd, has entered administration and we’re at the moment participating constructively with the appointed directors.
“A Coastal Workboats vessel is at the moment on our slipway, and the directors are at the moment evaluating probably the most appropriate subsequent steps for the vessel.”
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