UK shipbuilding company collapses into administration – all jobs lost | UK | News
The business had five employees and planned to employ 20 more (Image: Getty)
All jobs were lost after a British shipbuilding company went into administration. The business was founded in 2018 before government funding was secured in a bid to boost the local industry.
Coastal Workboats Scotland Limited (CWS) has been confirmed to have appointed administrators just three years after signing a 10-year lease with Stornoway Port Authority in the Outer Hebrides. During this time he was awarded government support of £6.2 million and a grant of £167,000 from the Highlands and Islands Enterprise (HIE). The government hoped the business would boost the shipbuilding industry in the town of Stornoway but soon ran into financial difficulties.
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As reported by Scottish SunExecutives at FRP Advisory blamed “design issues and supply chain delays” for the recent collapse. Five boats are currently unfinished, including the UK’s first all-electric commercial workboat.
Coastal Workboats Scotland Limited employed five staff to build the boats. It had also planned to employ 20 more staff to help with its ongoing projects, but this will no longer happen.
Administrators FRP Advisory said: “The company was operating a boatbuilding business from a leased shipyard at Goat Island, Stornoway, Isle of Lewis. A total of five staff were employed at the date of the appointment and various shipbuilding contracts were ongoing, including contracts agreed in early 2022 with Damen Hardinxveld to build two Landing Service Ships.”
They added: “In 2022 CWS applied for a funding grant from Innovate UK to build the first Electronic Landing Utility Vessel (E-LUV) in the UK, an all-electric inter-island workboat powered by a shore-powered storage station.
It was hoped the business would boost the shipbuilding industry in Stornoway (Image: Getty)
“In November 2023, the company signed a 10-year lease with Stornoway Port Authority for the Goat Island facilities. Additional contracts were subsequently signed with Damen Gorinchem in July 2024 to build two tug vessels.”
The executive continued: “As of September 2024, the company has received an additional grant of £167,000 from Highlands and Islands Enterprise to purchase innovative equipment to help grow the business. The grant has been used to fund robotic welding equipment to build and support the E-LUV project.
“In February 2025, after the costs of the E-LUV project increased, additional unsecured financing of £1.6 million was agreed with Damen Hardinxveld to support the company’s capital position. CWS had initiated a number of major shipbuilding contracts since 2022 and additional funding, including grants and loans, had been made available to support these contracts.”
FRP added: “The company has experienced financial difficulties through 2025, due in part to design issues and supply chain delays that have impacted progress on shipbuilding timelines and put significant pressure on the company’s cash flow.”
Executives blame ‘design issues and supply chain delays’ (Image: Getty)
A HIE spokesperson said: “We are aware of the current situation with Coastal Working Vessels and are in close contact with the company regarding its future.
“We are also working with administrators to help achieve the best possible outcome for public funds. Discussions are ongoing and we cannot comment on specific details until the outcomes are agreed.”
A Port of Stornoway spokesman said: “The Port is aware that our tenant Coastal Workboats Ltd has entered administration and we are engaging constructively with the administrators currently appointed.
“A Coastal Working Vessel vessel is currently in our slipway and managers are currently assessing the most appropriate next steps for the vessel.”
