First Minister John Swinney has said both the UK and Scottish Governments are keen to protect jobs at the Harland and Wolff yards, as the company faces an uncertain future.

He said Deputy First Minister Kate Forbes has been in talks with the UK Government to safeguard the future of employment at the shipbuilding company’s sites.

Harland and Wolff has a shipyard in Belfast and owns two fabrication sites in Scotland – at Methil, Fife, and Arnish, Lewis, – as well as Appledore in north Devon.

It has been denied a £200 million government loan guarantee, leading to the company engaging an investment bank to discuss its “strategic options”.

Chief executive John Wood has taken a leave of absence and Russell Downs, an industry expert in refinancing and recapitalisation, has stepped in as interim executive chairman.

Harland and Wolff is part of a consortium, including Spanish shipbuilder Navantia, which won a contract to build fleet solid support (FSS) ships designed to supply munitions and supplies to Royal Navy warships at sea.

Mr Swinney was asked about what steps the Scottish Government are taking as he spoke to journalists on Tuesday.

He said a number of talks had taken place between Ms Forbes and the UK Government and trade unions in the last few days.

Mr Swinney said: “There is obviously a situation where Harland & Wolff are trying to secure additional investment in their operations.

“Our priority is to make sure that we do everything that we can to support employment at Arnish and Methil.

“The Scottish Government will do that in concert with the United Kingdom Government where it’s possible for us to support such proposals.”

In a written statement to Westminster on Monday, Business Secretary Jonathan Reynolds explained why the Government had rejected the request to act as a guarantor on fresh lending sought by the company.

He said it had not been an easy decision but there was a “very substantial risk that taxpayer money would be lost”.

He added: “The Government believes, in this instance, that the market is best placed to resolve the commercial matters faced by Harland and Wolff.”