CAMMELL Laird could benefit from a shipbuilding lending scheme aimed at boosting the UK's coastal communities.

The Shipbuilding Credit Guarantee Scheme, launched by the Department for Business and Trade on Wednesday (July 26), is part of a £4b plan to revitalise the industry.

It could create hundreds of UK jobs and contribute hundreds of millions of pounds to the economy.

Through the scheme, the Government will act as a guarantor for lenders, unlocking credit for maritime firms.

It will help to boost the UK shipbuilding industry and drive growth in areas such as Merseyside, Plymouth, the Solent, Rosyth, Clydebank and Belfast.

Further details of the new scheme will be revealed in the coming weeks.

David McGinley, chief executive of A&P Group and Cammell Laird, said: "A&P and Cammell Laird are the UK's largest commercial ship repairers and shipbuilders, and as such, we have welcomed the announcement of the Government’s Shipbuilding Credit Guarantee Scheme.

"A&P Group and Cammell Laird operate four shipbuilding and repair yards, which include 11 of the UK's largest dry docks, which have allowed the facilities to deliver in excess of 1,500 dry-dockings in the past decade and will continue to do so."

Recent new shipbuilding programmes at the yard include the RRS Sir David Attenborough, described as one of the most technically complex ships ever to be delivered by a UK facility, as well as a range of modern vehicle ferries to organisations such as Red Funnel, Western Ferries and transport for Northern Ireland.

Additionally, 12 barges have also been delivered to Cory Ltd for use on the River Thames.

David McGinley continued: "Both A&P and Cammell Laird continue to deliver significant economic value through its established supply chain.

"Both businesses inject millions into the North East, South West and South East of England – and indeed the rest of the UK.

"We hope the important announcement of the Shipbuilding Credit Guarantee Scheme will enable us to further develop our workforce, facilities and capabilities, and compete on a level playing field with our international competitors to provide UK customers with world-class and environmentally friendly new ships and repair and upgrade services.

"This in turn will help to meet the target of net zero whilst also driving huge social value into our communities and the important local SME supply chain.

"We look forward to receiving further details of the new scheme."

Minister for Industry and Economic Security Nusrat Ghani said: "Shipbuilding is an integral part of the UK’s industrial identity and through this scheme we are backing our great maritime businesses to get ahead of the competition.

"With cutting-edge vessels designed and built here in the UK, this will be a boost to high-skilled careers and every company involved in the supply chain for shipbuilding, helping us to grow the economy."

The scheme will guarantee a percentage of the value of loans used to purchase, refit, retrofit or repair vessels, sharing the risk with lenders to encourage offers of finance to UK vessel owners and operators.

It is one of a number of targeted measures being taken as part of the government’s National Shipbuilding Strategy Refresh to encourage ship owners and operators to place new orders and upgrade their existing fleets with the world-leading shipyards that are based up and down the UK.