Govan - Economy

Economy

Govan was at one stage the centre of the world-renowned Clydeside shipbuilding industry, but few shipyards remain today. One of Govan's original yards is one of only two large shipyards to survive on the Upper River Clyde, the other being Yarrow Shipbuilders Limited based in Scotstoun. These two yards form a large part of BAE Systems Surface Ships.

In 1841, Robert Napier began iron shipbuilding in Govan, and in 1843 produced its first ship, the Vanguard. He also procured a contract with the Royal Navy to produce vessels, notably the Jackal, the Lizard, and the Bloodhound. He also allowed naval officers in training to visit the shipyard to familiarise themselves with the new vessels. Napier's Shipyard in Govan was later acquired by William Beardmore and Company in 1900 before being sold on to Harland & Wolff in 1912. It finally closed in 1962 and most of the site was redeveloped into housing.

Govan's other major shipbulding firm was founded in the 1860s as Randolph, Elder and Company, later becoming John Elder and Company. In 1885 the yard moved further west to its present site and was reorganised as the Fairfield Shipbuilding and Engineering Company Ltd. This company continued until 1965 when it filed for bankruptcy. In response in 1966, the yard was again reorganised as Fairfields and guaranteed by the government. The following year Fairfields and the other major Clydeside yards (Stephens, Connels, Yarrows and John Browns) were merged to form Upper Clyde Shipbuilders (UCS).

In 1971 Upper Clyde Shipbuilders went into receivership and the Tory government under Edward Heath refused it a £6m loan. Rather than go on strike, which was the traditional form of industrial action, the union leadership of the yards decided to have a work-in and complete the orders that the shipyards had in place. In this way they dispelled the idea of the workers being 'work-shy' and also wanted to illustrate the long-term viability of the yards. The work-in was successful in the short-term. YSL withdrew from UCS in 1971 and Govan was sold off in 1973 as Govan Shipbuilders.

In 1977, the Labour government of James Callaghan passed the Aircraft and Shipbuilding Industries Act which nationalised Govan and grouped it with other major British shipyards as British Shipbuilders. In May 1979, Margaret Thatcher was elected Prime Minister and her administration soon began its privatisation programme. British Aerospace, established by the same act, was privatised in 1981. British Shipbuilders' road to privatisation was not as swift, and the group was sold piece by piece in the course of the 1980s.

Kværner of Norway, as part of a planned development of a large international shipbuilding group, took over Govan. British Shipbuilders' sale of Govan to the Norwegian firm was completed in 1988 and the yard was renamed Kvaerner Govan.

In 1999, GEC's Marconi Marine division purchased the yard when Kværner announced its exit from the shipbuilding industry. GEC's Marconi Marine division already owned YSL (purchased in 1985) and VSEL (purchased in 1995). Marconi Electronic Systems and its Marconi Marine unit were sold to British Aerospace in 1999 to form BAE Systems. The shipbuilding operations became BAE Systems Marine, which subsequently became part of BVT Surface Fleet, a naval shipbuilding joint venture between BAE Systems and VT Group, which became BAE Systems Surface Ships in 2009.

Alexander Stephen and Sons also established a Shipyard in nearby Linthouse in 1870. The yard eventually closed in the wake of the collapse of the Upper Clyde Shipbuilders consortium in 1971.