The University of Strathclyde has announced the appointment of Lord Smith of Kelvin as its new chancellor.

Lord Smith is one of Scotland's leading business figures and chairs the organising committee for the Glasgow 2014 Commonwealth Games.

Lord Smith, who described his appointment as "an honour", is chairman of SSE, the Weir Group and the UK Green Investment Bank. He is also a non-executive director of Standard bank Group South Africa.

Welcoming the appointment, Professor Sir Jim McDonald, Strathclyde's principal and vice chancellor, praised the new chancellor's contribution to public life.

He said: "Lord Smith of Kelvin is a visionary businessman who has dedicated his life to the social, economic and cultural development of Scotland.

"He has been a keen supporter of Strathclyde on its journey as we reinforce our position as a leading international technological university. Strathclyde's distinctiveness comes from its strong and successful partnerships with business and industry. As chancellor, Lord Smith will bring enormous value through his contributions to this aspect of our work."

Speaking after his appointment, Lord Smith, a crossbench peer, acknowledged the global challenges currently facing higher education.

He said: "Strathclyde is a place which makes things happen. Across all of its faculties, the university is making a difference, not just in Glasgow and Scotland, but around the world.

"The University is grappling with the major issues of today: power and energy, high-value manufacturing, business and entrepreneurship, and the future development of our cities. It is also at the forefront of public policy development, and a major source of highly qualified graduates for the professions.

"As chancellor, I see my role to act as an ambassador for Strathclyde as it fulfills its destiny as 'the place of useful learning'."

Sir Jim also paid tribute to Lord Hope of Craighead, who has been chancellor since 1998.

He said: "Lord Hope has been an inspiration to our students and staff, and his wise counsel has helped the university tremendously over the years. It is fitting that, in his final year in office, Strathclyde is holder of the UK University of the Year title."