A £9.22 million funding package from Scottish Enterprise is set to breathe new life into Scotland’s maritime sector, backing a major expansion by BAE Systems that’s expected to create 300 jobs and safeguard over 1,000 more. The funding, announced by Kate Forbes, Deputy First Minister, during her visit to the Applied Shipbuilding Academy in Glasgow, supports a broader £300 million investment by BAE Systems. This includes new shipyard facilities on the Clyde and the introduction of advanced manufacturing technologies aimed at speeding up ship production and boosting productivity.
The majority of the public funds—£7.4 million—will go towards research and development, with £1.8 million earmarked for training aid. This dual-pronged approach is designed to maximise workforce skills and provide long-term industry benefits through the Applied Shipbuilding Academy, which will serve not just BAE, but the wider maritime sector.
“This investment will radically transform shipbuilding on the Clyde,” said Kate Forbes. “It’s about more than jobs—it’s about shaping Scotland’s future workforce and building on the legacy of our maritime heritage.”
The Applied Shipbuilding Academy collaborates with schools, colleges, and universities, while also engaging with suppliers, customers, and local authorities. It’s part of a wider vision to position Glasgow as a hub of shipbuilding innovation, working closely with the National Manufacturing Institute for Scotland and the Clyde Maritime Industry Forum to share knowledge and skills across the sector.
According to Simon Lister, Managing Director of BAE Systems Naval Ships, the funding will “help secure shipbuilding in Glasgow for generations to come.” He emphasised the importance of equipping the next generation with the necessary skills for a highly specialised industry.
Adrian Gillespie, CEO of Scottish Enterprise, added that the project fits the agency’s mission-based approach to economic development. “Not only will it create hundreds of highly skilled jobs, it’ll establish one of the most advanced and productive manufacturing facilities in the UK.”
The initiative carries significant economic weight, with projected contributions of £255 million in Gross Value Added over five years, rising to £1.1 billion over a decade. The effort continues more than a decade of collaboration between Scottish Enterprise and BAE Systems, reinforcing the strategic importance of the Govan and Scotstoun yards to the Scottish economy.
