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A state-backed shipyard building the UK\u2019s first all-electric workboats has collapsed into administration.<\/p>\n
Coastal Workboats Scotland revived shipbuilding in Stornoway for the first time in 100 years when it began operations in 2023.<\/p>\n
It signed a 10-year lease agreement with Stornoway Port Authority and relocated its fabrication business from England to Goat Island.<\/p>\n
The firm received \u00a36.2 million backing from the\u00a0UK Government\u00a0through Innovate UK and \u00a3167,000 from Highland and Islands Enterprise.<\/p>\n
Five vessels remain unfinished after the firm \u201csuffered financial challenges\u201d.<\/p>\n
It had five staff and aimed to employ a further 20 to build a range of workboats for customers including Damen, the Dutch shipbuilder.<\/p>\n
The administration, reported by the Stornoway Gazette<\/em>, is being handled by FRP Advisory which said: \u201cThe company operated a boat building business from a leased shipyard on Goat Island, Stornoway, Isle of Lewis.<\/p>\n \u201cAt the date of the appointment (of administrators) it employed a total of five staff and had various shipbuilding contracts under way including contracts agreed in early 2022 to build two Landing Utility Vessels with Damen Hardinxveld.\u201d<\/p>\n The administrators added: \u201cThe company suffered financial challenges through 2025, in part due to design issues and supply chain delays which impacted progress on vessel build timescales and placed considerable pressure on the company\u2019s cashflow.\u201d<\/p>\n A spokesperson for Highlands and Islands Enterprise said: \u201cWe are aware of the current situation at Coastal Workboats and have been in close contact with the company regarding its future.<\/p>\n \u201cWe are also working with the administrators to help secure the best possible outcome for public funds.<\/p>\n \u201cDiscussions are ongoing, and we are unable to comment on specific details until outcomes are agreed.\u201d<\/p>\n An Innovate UK spokesperson said: \u201cInnovate UK is a responsible steward of public funds. Innovation is inherently risky and new technologies, markets and businesses can fail. We will act responsibly as necessary in this case.\u201d<\/p>\n A spokesperson for Stornoway Port said: \u201cThe port are aware that our tenant, Coastal Workboats Ltd, has entered administration and we are currently engaging constructively with the appointed administrators.<\/p>\n \u201cA Coastal Workboats vessel is currently on our slipway, and the administrators are currently evaluating the most suitable next steps for the vessel.\u201d<\/p>\n \t <\/div>\n