The creation of these groupings included Scott Lithgow on the Lower Clyde, Swan Hunter on Tyneside and Robb Caledon on the east coast of Scotland.

In February 1971, in the wake of the emergency nationalisation of Rolls-Royce Limited, the then Conservative government under Edward Heath and the Secretary of State for Trade and Industry, John Davies, announced a policy that refused further state-support for "lame duck" industries, which led to a crisis of confidence amongst UCS creditors and resulted in severe cash flow problems for the company.

After the government refused UCS a £6m working capital loan as a lender of last resort, the company was forced to enter liquidation although the yards had a full order book and a forecasted profit in 1972.

[7] At one demonstration, on Glasgow Green, Tony Benn addressed those in attendance, and Matt McGinn and Billy Connolly (both former shipyard workers) offered entertainment to the gathered crowd.

[9] In February 1972, the Conservative government relented to the demands of the workers and restructured the yards around two new companies: Govan Shipbuilders was established (formerly Fairfields), along with its subsidiary Scotstoun Marine Ltd (formerly Connells).