Tyne yards to share in £3.9bn carrier work

Feb 5 2008 by Chris Knox, The Journal

SCORES of North-East workers are expected to be transferred to work in Barrow after two Tyneside shipyards were earmarked to undertake work on two new Royal Navy aircraft carriers.

River Tyne marine construction companies McNulty’s Offshore and A&P Tyne look set to land a share of a £3.9bn Government order for two new aircraft carriers.

The companies say this contract will guarantee employment for hundreds of North-East workers – some of whom will transfer to the BAE shipbuilding yard in Barrow to undertake elements of the work.

Dave Skentelbery, managing director of A&P, Hebburn, a ship repairer and converter, said: “This will provide work for both companies for around five years.

“We employ 250 people and this will guarantee the jobs of these workers, however we are still in a position to bid for more work, and this is what we are currently doing.

He confirmed that due to the nature of the work means some of the two Tyneside yards’ employees will be based in Barrow for the duration of the work.” The Ministry of Defence is set to announce shortly that BAE Systems Submarine Solutions in Barrow will be given an order to build hull blocks for two new aircraft carriers, the HMS Queen Elizabeth and HMS Prince of Wales.

BAE in Barrow in turn has “down-selected” McNulty, of Jarrow, and A&P to carry out some of this work.

A BAE spokesman said: “Our employees are tied up on a submarine project and we will therefore be bringing in workers from the two Tyneside yards as when they are needed to fulfil the contract.

“Some of the hull work will be undertaken on Tyneside and some workers from the North-East will be needed in Barrow for assembly and fitting.”

The work will start next year if the government signs the carrier contract in the next few weeks.

A MoD spokesman said negotiations to sign the contract for the aircraft carriers were at an advanced stage and that good progress was being made on an agreement. A&P and McNulty have formed an alliance the under the banner of the Tyne Carrier Association to bid for the work.

Mr Skentelbery added: “The two companies have worked in partnership on projects in the past.

“It is a partnership which we have proved can work well.”

Steve Keyworth, managing director of McNulty, said: “The contract will mean a lot of extra work for both yards and provide continuity of employment.”

BAE Barrow has a wealth of engineering and management capabilities through its work on Trident and Astute submarines, and surface ships including most recently HMS Albion and HMS Bulwark.

The two new carriers will be the biggest vessels ever ordered by the Royal Navy.

At 65,000 tons, they will be more than three times the size of the Invincible-class carriers used by the Royal Navy, although smaller than the 100,000-tonne Nimitz class carriers used by the Americans.

Construction contracts for the carriers have been earmarked for BAE Systems at Glasgow and Barrow, as well as the VT Group yard in Portsmouth and Babcock, Fife.