A £1 million grant will help create 100 new jobs at the last commercial shipyard on the Clyde.
The cash will also help protect the existing workforce of 150 at the Ferguson yard in Port Glasgow, Inverclyde.
Deputy First Minister John Swinney announced Ferguson Marine Engineering Limited (FMEL) had received a regional selective assistance grant from Scottish Enterprise.
It comes more than a year after the shipyard was rescued from administration, when it was taken over by Clyde Blowers Capital, which is owned by leading businessman Jim McColl.
FMEL now has an order book worth some £110m, including a £97m order to build two new dual-fuel CalMac ferries.
Visiting the yard, Mr Swinney said: “Commercial shipbuilding on the Clyde has a long history and it is important that we continue to support this vital industry.
“This £1m grant will enable the company to further invest in the site on the Clyde, which will create jobs and help ensure our shipbuilding industry continues to have a sustainable future.
“FMEL has also recently won a contract worth almost £100m from CalMaC for the construction of two new ferries, the largest commercial vessels to be built on the Clyde since 2001.
“Since Clyde Blowers took over the company, they have done a fantastic job of turning the company around and I am delighted to visit their premises today to see just how much progress has been made.”
The grant money will allow investment in the yard and the arrival of new, state-of-the-art equipment.
FMEL managing director Liam Campbell said: “We greatly appreciate this contribution by Scottish Enterprise to support us in rebuilding our yard and in doing so creating new jobs and skills for the local area.”
Paul Lewis, managing director of Scottish Development International and Scottish Enterprise international operations, said: “Since last September we’ve been working with FMEL to help drive forward its plans of developing a successful, growing business with international ambition.
“Today’s announcement marks a significant milestone for the company and we will continue to work with them as they realise their full growth potential.”