Scottish unions and politicians have reacted with anger as state ropax owner CalMac decided to build new ferries overseas.
State-owned Ferguson Marine in Glasgow was among 11 bidders to build two vessels to replace older ships on the route to the island of Islay.
But the shipbuilder has failed to make a shortlist featuring four foreign companies.
Ferguson Marine said it was "disappointed" but would learn lessons as it looks for future work, the BBC reported.
The yard hit the headlines in 2019 when it was revealed that two other LNG-fuelled ferries it is building for CalMac will be more than four years late at double the original contract price.
Problems with the order dragged the yard back into administration, after it was initially resurrected under private ownership. The company was then re-nationalised.
Lithium batteries included
The new tender calls for two 95-metre ships with electric propulsion systems, but making use of lithium batteries where possible.
The four shortlisted shipyards are Damen Shipyards in Romania, Remontowa Shipbuilding in Poland, and the Turkish duo Sefine Denizcilik Tersanecilik Turizm and Cemre Marin Endustri.
State agency CMAL procures ships for CalMac.
"We received interest from many shipyards across the world, and carried out robust assessment of their technical and financial suitability to take on this project," CMAL director of vessels Jim Anderson told the BBC.
"Four shipyards scored the highest across both criteria and have now been issued an ITT (invitation to tender) for the contract."
Deal worth more than $138m
A contract decision is planned for March 2022. The deal is estimated to be worth more than £100m ($138m).
The GMB union said: "Ferries paid for by the public purse will be manufactured in Eastern Europe or Turkey."
Scottish Trades Union Congress general secretary Roz Foyer told the Scottish Herald that the move is "another bitter blow".
"Lifeline ferries sailing in Scottish waters need to be built in Scotland," he said.
Paul Sweeney, Scotland's shadow minister for public finance and employment, said on Twitter that the CalMac shortlist is a disaster for Scottish shipbuilding.
He added: "Having run Ferguson Marine into the ground, Scottish government agency CMAL is now offering CalMac ferry contracts to foreign shipyards. We could, and should, be building the whole CalMac ferry fleet on the Clyde."
A 'betrayal'
And Kenny MacAskill, deputy leader of the nationalist Alba partner, said the decision was a "betrayal" and a "kick in the teeth".
"Orders should be going to Ferguson to keep the yard in business and the people employed," he told the Scottish Herald.
"Instead what we see is hundreds of thousands of pounds in exorbitant fees to highly paid executives enriching themselves while the workers face an uncertain future," he added.
Scottish Conservative transport spokesman Graham Simpson told the BBC the shortlist was a "humiliation" for the ruling Scottish National Party.
The Scottish government responded by saying it was fully behind Ferguson to secure a sustainable future for the company.
Ferguson Marine said it had put forward a "robust bid" for the new order but it respected CMAL's decision.
