The company was founded in 1885 by Archibald Kennedy, 3rd Marquess of Ailsa, along with Peter James Wallace and Alexander McCredie.
In 1902 the Ailsa yard fitted out the polar exploration ship Scotia for the Scottish National Antarctic Expedition of 1902–04.
During the First World War, the shipyard built the Royal Navy's first paddle minesweeper of the Racecourse class.
[2] During the Second World War, Ailsa built vessels for the Navy, including several Bangor-class minesweepers.
[3] The yard has recently been used for ship repair work and the fabrication of large concrete sections for a pier improvement programme in Grimsay, Western Isles.