The Ferguson Shipyard has officially been taken into public ownership, the Scottish Government has announced.

The historic Port Glasgow yard will now be known as Ferguson Marine (Port Glasgow) Ltd after administrators decided three commercial offers for the premises did not “represent a better outcome for creditors” than the Scottish Government’s bid.

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Bosses at the yard signalled their intention to call in administrators in August following a long-running dispute with Caledonian Maritime Assets Ltd over the delivery of two ferries.

Employees at the yard have been informed of the sale.

Economy Secretary Derek Mackay said: “We have been working for over two years to find a resolution to the difficulties at Ferguson Marine and our priorities remain the completion of the two CalMac ferries, protecting jobs, and securing a future for the yard.”

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“In the absence of a workable commercial solution the administrators have concluded that public ownership is in the best interests of the creditors.

“Now that this has been confirmed, I am determined that we continue to work closely with everyone at the yard to progress work on the vessels and achieve the best possible outcome for the yard and its employees.”