The future of shipbuilding on the River Clyde is looking brighter after the UK government confirmed an additional £2.5 million in funding for a specialist welding facility, effectively rescuing an £11 million project that had been left in limbo by political wrangling earlier this year. The welding centre, to be led by Rolls-Royce in partnership with Strathclyde University and marine engineering firm Malin, is set to play a pivotal role in supporting the construction and maintenance of Royal Navy submarines and training a new generation of skilled shipbuilders.
The story of the welding centre has been anything but straightforward. Earlier in 2025, the project faced an unexpected hurdle when Scottish Enterprise, the national economic development agency, was unable to provide funding due to the Scottish National Party’s (SNP) longstanding ban on financing firms involved in munitions. This policy, which had been in place for years, suddenly became the focus of a heated political debate as Labour accused the SNP of prioritizing ideology over economic growth and national security.
Defence Secretary John Healey did not mince his words. On September 29, 2025, he declared, “Where the SNP won’t back Scottish industry, young people or our national security, Labour will step in.” According to BBC, Healey further emphasized Labour’s commitment, stating, “With our record defence investment, and our record exports deals, Labour is making Scotland a shipbuilding superpower once again. We’ll deliver good, well-paid jobs and opportunities across the Clyde, Rosyth, Methil and beyond.”
The welding centre will be located at Old Kirkpatrick, near the Erskine Bridge, as part of Malin’s new Scottish Marine Technology Park. Its mission is both practical and ambitious: to shore up the skills base needed to keep Scotland at the forefront of naval shipbuilding, a sector that has seen renewed optimism following a series of high-profile export deals. Just last month, BAE Systems in Glasgow secured a £10 billion contract to build Type 26 frigates for the Norwegian Navy, a move hailed by many as evidence of a renaissance in Scottish maritime engineering. In the east, Babcock is also eyeing significant export orders for its Type 31 frigates being built at Rosyth.
The political context surrounding the welding centre’s funding has been fraught with accusations and counter-accusations. Labour, both at the UK and Scottish levels, seized on the SNP’s ban on munitions funding, branding it “student union politics” and warning that such a stance risked stifling innovation and denying young people valuable opportunities. As reported by BBC, Healey criticized the SNP for not backing Scottish industry, young people, or national security, and said Labour will deliver well-paid jobs across Clyde, Rosyth, and Methil.
Scottish Labour leader Anas Sarwar joined the chorus, arguing that Scotland’s “world-class skills and proud shipbuilding tradition” had been “failed by the SNP.” He added, “Labour is proving that we are the only party that will back investment to protect our security and support high-paid jobs. While the SNP turns its back on our national security and on Scottish workers, Labour is stepping up to safeguard jobs, strengthen our defences and invest in the next generation. This new welding facility is proof that when Scottish Labour and UK Labour work hand-in-hand, we can deliver the new direction and the new opportunities that Scotland needs.”
For their part, the SNP defended their previous policy as a principled position. Cabinet minister Mairi Gougeon told BBC Scotland that, unlike the UK government, “when we have principles, we stick to them.” However, as the international landscape shifted and criticism mounted, First Minister John Swinney announced a significant policy shift: the ban on munitions funding would be scrapped, except for firms supplying weaponry to Israel. This move, according to Swinney, was in response to the “changed international landscape.”
Scottish Enterprise, caught in the middle of the policy dispute, clarified its position. A spokesperson told BBC, “We continue to work with the Scottish government as we implement the new policy.” The agency confirmed it had informal discussions with Malin about the welding centre but did not receive a formal application for funding because, at the time, such support would not have aligned with government policy. Despite this, the Scottish government pointed out that it had provided more than £90 million in funding to companies operating in the aerospace, defence, and shipbuilding sectors since 2006/07.
A Scottish Government spokesperson reiterated to the Evening Standard, “We have provided over £90 million in funding to companies operating in the aerospace, defence and shipbuilding sectors since 2006/07. We continue to support the defence sector, particularly regarding workforce development, which is fundamental to our national security and a strategic driver for Scotland’s economy.”
The rescue of the welding facility is being seen by many as a turning point in the political debate over defence investment in Scotland. Labour leaders, including Defence Secretary Healey and Scottish Labour’s Sarwar, have positioned their party as champions of the country’s maritime heritage and future prosperity. Healey, speaking to the Evening Standard, said he was “proud” to work with Sarwar to “strengthen our national security in a more insecure world, while making defence an engine for growth across Scotland.” He even suggested that Labour could “turbocharge” these efforts if the party is elected to power in Scotland next May.
The welding centre’s anticipated impact extends well beyond the yards of the Clyde. Its backers hope the facility will become a hub for skills development, innovation, and economic growth, training the next generation of shipbuilders and ensuring Scotland remains a global player in naval engineering. The centre’s operation by Rolls-Royce, in partnership with Strathclyde University and Malin, underscores a collaborative approach that brings together industry, academia, and government.
Naval shipbuilding in Scotland is, by many accounts, enjoying a renaissance. The £10 billion export order for BAE Systems and the confidence expressed by Babcock about future contracts signal a renewed international appetite for Scottish-made ships. This resurgence, supporters argue, is not just about economic growth but also about national security, technological leadership, and community pride.
Of course, the broader political debate over defence funding, industrial policy, and national priorities is far from settled. The SNP’s earlier resistance to supporting firms involved in munitions reflected a deeply held set of principles, but the realities of global security and economic competition have prompted a pragmatic shift. Meanwhile, Labour’s intervention has reshaped the conversation, emphasizing jobs, skills, and Scotland’s place on the world stage.
As the welding centre prepares to open its doors, the River Clyde stands as both a symbol of Scotland’s storied past and a beacon for its industrial future. The coming years will reveal how this new investment translates into jobs, innovation, and international success, but for now, the mood along the Clyde is one of cautious optimism, tinged with the hope that political cooperation—and a little bit of old-fashioned shipyard grit—can indeed chart a new course for Scotland’s shipbuilding industry.
