Shipbuilding will return to Stornoway following a lease deal with a Devon-based workboat company.
Stornoway Port Authority (SPA) has announced the 10-year lease agreement with Coastal Workboats.
The English firm will relocate fabrication to the Goat Island site in order to build a range of workboats.
The move is expected to create 25 jobs in the local marine manufacturing sector.
Initial plans for shipbuilding firm in Stornoway
Coastal Workboats will start by constructing an electric workboat funded by a £6.2 million grant from the UK Government.
The new facility will be supported by the firm’s 3D CAD design – allowing “greater efficiency in the fabrication process”.
According to SPA chief executive Alex Macleod, Coastal Workboats will be the first dedicated shipbuilder in the town for 100 years.
Mr Macleod added: “This partnership reaffirms our commitment to fostering innovation and growth within the marine industry.
“This agreement also marks the return of a dedicated shipbuilder in Stornoway for the first time in 100 years.
“We are proud to have played our part in bringing this industry back to the island.”
Coastal Workboats director Brian Pogson said the family-run business took pride in building on a “foundation of community”.
Mr Pogson continued: “We’re thrilled to continue this family and friends ethos with our move to Stornoway; investing in, learning from and growing with a fantastic community.”
The marine engineering workshop was hailed as “world-class” by Mr Macleod.
It received funding from economic development agency Highlands and Islands Enterprise, Western Isles Council and SPA.
Funding from the Scottish Government’s Regeneration Capital Grant Fund also contributed to its creation.
Mr Macleod said: “The facility at Goat Island is world-class, with overhead cranes specifically designed for vessel construction.
“We are thrilled to support Coastal Workboats as they undertake these ambitious projects.”
The project has also been backed by the National Shipbuilding Office (NSO), which said it was “incredibly supportive” of Coastal Workboat’s expansion.
NSO oversees all of the UK Government’s interests in UK shipbuilding.
Rex Cox, its chief executive, said: “The NSO is very pleased to see the opening of Coastal Workboats’ brand new manufacturing facility in Stornoway.
“It should allow them to capitalise on the current opportunities in the workboat sector.
“Shipbuilding brings significant benefits to a local area; this new facility will bring around 25 new highly skilled and well-paid jobs.”