FERGUSON’S Clyde shipyard, saved from closure by billionaire businessman Jim McColl, has been awarded a £97m contract to build two new ferries.

The deal securing 150 jobs, was finalised today between the Scottish Government and the owners of the yard in Port Glasgow,

Mr McColl wants to expand the yard to build bigger ships and the award is the next step in his plans to revive commercial shipbuilding on the Clyde.

Fergusons was announced as preferred bidder for the ferries in August and negotiations have now been completed.

Derek Mackay Minister for Transport and Islands said: “I’m delighted this contract has been formally awarded to Ferguson Marine Engineering Limited and the shipyard can now start work on these new ferries, the largest commercial vessels to be built on the Clyde since 2001.

“The award of this contract will see FMEL’s 150-strong workforce retained and more staff taken on, underlining the Scottish Government’s commitment to creating the vital jobs needed to boost local economies and help stimulate growth across Scotland.

“I once again congratulate FMEL on proving Scottish shipbuilding can succeed in a competitive market, and I look forward to seeing these new vessels join the West Coast ferry fleet in the future.”

Tom Docherty, Chief Executive, CMAL commented: “We are delighted to sign the shipbuilding contracts, securing FMEL as the contractor to build the two newest additions to our fleet. Key items of equipment will now be ordered, detailed plans will be developed for approval and it is anticipated that actual construction will start early in 2016. We hope to see the first of these vessels in operation in early 2018.”

Mr McColl, acquired Ferguson Marine in September last year and immediately stated his intention to expand the business and create new jobs.

The CalMac ferries deal could see 400 people employed at the yard.

Mr McColl previously told the Evening Times he hopes to have as many as 1400 workers in five years.

The ships, which are expected to be delivered in 2018, are designed to carry more than 100 cars and up to 1000 passengers.