Jobs secured at A&P as contract clinched
Jul 1 2008 by Peter McCusker, The Journal
ONE of the region’s leading ship repair yards has been awarded a £53m Ministry of Defence contract which will help secure the future for hundreds of workers on the River Tyne.
The A&P Group, based in Hebburn, will maintain five Royal Fleet Auxiliary (RFA) vessels, including the last two ships to be built on the Tyne – the Largs Bay and Lyme Bay.
David Skentelbery, managing director of A&P Tyne, said the contract would help secure the future of the 250 full-time staff.
“The contract is worth more than £50m to the A&P Group over five years. More importantly, subject to key performance targets being met, the rolling contract will be extended in five yearly increments up to a potential total of 30 years, giving the yard stability in our order book and the ability to invest and plan for the future.
“This is good for the long-term security of the company.”
Trevor Harrison, chief executive of Northern Defence Industries, which represents and lobbies for more than 200 companies in the North East’s defence sector, welcomed the news. He said: “This is fantastic for the company and for the region. This is a substantial piece of work. These types of contracts are very competitive and A&P’s success is testament to the drive and commitment of the management team and the workforce.
“It’s good news for the company. It will help them plan and organise for the future.”
The contract award by the MoD yesterday means that A&P, which also has a yard in Falmouth in Cornwall, will maintain five vessels; RFAs Cardigan Bay, Largs Bay, Lyme Bay, Mounts Bay and Argus.
The Largs Bay and Lyme Bay were both built on the Tyne by Swan Hunter.
The Lyme Bay was the ship that signalled the death of the yard when the MoD ruled it had to be towed away for completion elsewhere, blaming poor management for delays in finishing the work.
Northwestern Shiprepairers and Shipbuilders (NSL), of Birkenhead, Merseyside, was yesterday awarded the contract to maintain a further 11 Royal Navy support vessels. It is understood four other yards were also bidding for the work contracted to the Tyne and the Mersey.
