All jobs lost following collapse of Scots shipbuilding firm based on Isle of Lewis

All jobs have been lost at a Scottish shipbuilding firm based on the Isle of Lewis.

Coastal Workboats Scotland Ltd brought shipbuilding back to Stornoway for the first time in a century in 2023.

The company signed a ten-year lease agreement with Stornoway Port Authority in November of that year to relocate its fabrication business from England.

The shipbuilder received £6.2m backing from the UK Government to build a UK-first fully electric inter-island workboat supported by a shore-powered storage station.

The firm also received £167,000 from the Highland and Islands Enterprise to fund robotic welding equipment to build and support its E-LUV project.

They employed five staff and aimed to create 20 more jobs through shipbuilding projects, with five vessels remaining unfinished.

Administrators from FRP Advisory said the company suffered “financial challenges through last year, in part due to design issues and supply chain delays”.

These issues are said to have impacted progress on vessel build timescales and placed “considerable pressure on the company’s cashflow”.

Documents read: “The company operated a boat-building business from a leased shipyard on Goat Island in Stornoway, Isle of Lewis.

“At the date of the appointment (of administrators), it employed a total of five staff and had various shipbuilding contracts under way including contracts agreed in early 2022 to build two Landing Utility Vessels with Damen Hardinxveld.”

A spokesperson for Stornoway Port said: “The Port are aware that our tenant, Coastal Workboats Ltd, has entered administration and we are currently engaging constructively with the appointed administrators.”

An Innovate UK spokesperson said: “Innovate UK is a responsible steward of public funds. Innovation is inherently risky, and new technologies, markets and businesses can fail.

“We will act responsibly as necessary in this case.”

A spokesperson for Highlands and Islands Enterprise (HIE) said: “We are aware of the current situation at Coastal Workboats and have been in close contact with the company regarding its future.

“We are also working with the administrators to help secure the best possible outcome for public funds.

“Discussions are ongoing, and we are unable to comment on specific details until outcomes are agreed.”