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The UK government has pledged an additional £2.5m to support the establishment of a specialist welding facility for shipbuilding on the banks of the River Clyde. The project, valued at £11m and spearheaded by Rolls Royce, aims to bolster the construction and maintenance of Royal Navy submarines. Initial doubts surrounding the plans arose earlier in the year when it was revealed that Scottish Enterprise would not be providing funding due to the SNP’s prohibition on financing companies involved in munitions. The SNP’s decision was subsequently criticized by Labour, labeling it as “student union politics”. In response, First Minister John Swinney announced the reversal of this long-standing policy.
Operating in collaboration with Strathclyde University and marine engineering firm Malin, Rolls Royce will oversee the operation of the new welding center. The location of the facility will be adjacent to the upcoming Scottish Marine Technology Park at Old Kirkpatrick, near the Erskine Bridge. The Defence Secretary, John Healey, is set to announce at the Labour conference that the UK government will be injecting £2.5m into the project in place of the anticipated backing from Scottish Enterprise. Healey emphasized Labour’s commitment to supporting Scottish industry, youth employment, and national security by stepping in where the SNP falls short.
Scotland’s naval shipbuilding industry is experiencing a resurgence, exemplified by BAE Systems’ recent £10bn export order to construct Type 26 frigates for the Norwegian Navy in Glasgow. Additionally, Babcock in the east of the country is optimistic about securing export deals for Type 31 frigates being assembled in Rosyth. The potential threat to the specialized welding center, as first reported by The Times newspaper in May, incited a heated political debate and prompted a reevaluation of the SNP’s stance on funding for munition-linked manufacturers. While the SNP initially defended their position, First Minister John Swinney later announced the lifting of the munitions policy, with the exception of companies supplying weaponry to Israel.
In response to the unfolding situation, Scottish Enterprise clarified that although no formal application for funding had been submitted, discussions with Malin regarding the project had taken place informally. The organization indicated that any financial support would need to align with government policy, which at the time did not endorse munition manufacturing. Scottish Enterprise asserted its ongoing collaboration with the Scottish government as they implement the revised policy. The Scottish government emphasized its significant financial backing of over £90m for aerospace, defense, and shipbuilding companies since 2006/07. They reiterated their commitment to supporting the defense sector, particularly in terms of workforce development, which is crucial for both national security and Scotland’s economic growth
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