A row has blown up over plans to turn one of Scotland largest shipbuilding dry dock into a "scrap yard for ageing vessels".

The Inchgreen dock in Greenock, one of the largest in the UK, which has been largely unused for almost 20 years has been the centre of a campaign to bring it back into use.

Now a long-term deal has been signed with Atlas Decommissioning, which specialises in the end-of-life disposal of marine infrastructure, to use it as a hub for breaking up vessels.

The company said it would create about 100 jobs at the dock where the QE2 was fitted out in the 1960s after its launch from the John Brown shipyard in Clydebank.

Mike Wood, from Atlas Decommissioning said: "What we are doing here is essentially shipbuilding in reverse and requires much of the same engineering excellence and expertise."

Stephen McCabe, leader of Inverclyde Council, welcomed the move saying: “This is a terrific shot in the arm for the Inverclyde economy that will deliver almost 100 new, skilled jobs to the area and breathe new life into a key asset which is of local and national significance."

The development is the result of a deal between Peel Ports - the organisation that owns much of the industrial Clyde waterfront - and Atlas to lease the dry dock and adjacent land which will become an export hub for recyclable metals.

A waste management licence has been granted by the Scottish Environment Protection Agency (SEPA).

But Alba Party politicians have said it sounds the "death knell of a shipbuilding asset".

The Alba group leader on Inverclyde Council, Jim McEleny said: "Although a promise of one hundred jobs is on the surface welcome, this decision will prevent the growth of thousands of jobs we could’ve created.

"This is bad news for the Scottish maritime and shipbuilding sector and it further highlights a complete lack of strategy for the future of shipbuilding on the lower Clyde."

Fellow Inverclyde Alba party councillor Chris McEleny also condemned the deal adding: "This is a real kick in the teeth for the campaigners and supporters of the Save the Inchgreen Dry Dock. Peel's arrangement with Atlas, aided and abetted by Inverclyde Council has torpedoed any serious plans for growth on the lower Clyde.

The Herald:

"We have rotting nuclear submarines at Rosyth, now instead of utilising an asset to build ships or the essential parts for offshore and onshore wind technology, we'll have the country’s largest scrap yard full of rotting vessels in the west.

"We are totally opposed to this development and we will continue to campaign for the dry dock to be used for its intended purpose which is to build and repair ships."

Atlas, which is based in north-east England, said it had contracts in place with "blue chip" container lines for multiple vessels that they are removing from their current trading fleet.

Mr Wood added: "Inchgreen Dry Dock, as well as its size, also has direct access to very deep water. As a facility for the contracts we have in place I'd go as far as to say it is unique in the UK."

Scottish Government business minister Ivan McKee said: “This is excellent news for the Inchgreen Dry Dock, for Inverclyde and for Scotland.

“There is no doubt the pandemic has had a significant impact on our economy and therefore to see a company like ATLAS Decommissioning investing in Scotland’s economy and creating new jobs is very welcome and send a strong message to other investors.

“The Scottish Government is firmly focused on working together with business to seize Scotland’s potential and build an economy for everyone by delivering greater, greener and fairer prosperity.”

The Alba national conference in September passed a motion condemning the lack of investment that has been made in the Inchgreen and called on the Scottish Government to bring it into public ownership to support efforts to reindustrialise the Clyde."

But Peel Ports director Jim McSporran said: “Inverclyde’s economic woes are well-documented, with Office of National Statistics records showing an overall unemployment rate of 5.2%. We have promised to bring jobs to Inverclyde, and this is just the start.

“We are fully committed to having Inchgreen Dry Dock, which is a jewel in the crown of Scotland, back in full industrial use. That usage will pay full regard to such important issues as circularity and sustainability, as with this deal.

“Clydeport is a name that has a long and proud affinity with Inverclyde, and it now has the strength of Peel Ports, the second biggest ports group in the UK, behind it. We are excited to be working with ATLAS Decommissioning, a company with strong connections to global players in the shipping industry.

“This contract is a shining example of our stated commitment in Inverclyde and at all of our ports throughout the UK to local job creation in high unemployment areas that have a long and proud industrial history.

“We have been engaging closely with Inverclyde Council as we worked to secure this contract, which we believe will be a game changer for the area and a sign of more economic benefit to come.”

In 1964 when the 'Big Dock' was opened it was seen as the beginning of a new era for the district.

While it has a rich heritage it has lain largely dormant for many years.

Its landmark cranes were blown up in a controlled demolition in 2017, with Peel subsequently put under pressure by campaigners and local politicians to bring the site back to life.

It is one of the largest operational dry docks in Europe, with berthage and direct access to the deep-water channel in the Firth of Clyde.

The 32-acre site has been identified in the National Renewables Infrastructure Plan and is one of the area's three Glasgow Region City Deal projects, in line for £9m of public cash.

Bosses from Peel and subsidiary company Cammell Laird had previously promised to revitalise the Greenock facility and boost employment if a bid for a £5 million Royal Navy maintenance contract for aircraft carrier HMS Queen Elizabeth was successful.

But the UK Government awarded it to Babcock in Rosyth, Fife.

Inverclyde Council, in partnership with Peel had gained initial approval to create a £9.4 million marine training and manufacturing facility in and around Inchgreen, although not including the dry dock itself.