Offshore electricity deal will create 200 Tyne jobs

May 12 2009 By Peter McCusker, The Journal

THE rebirth of a Tyne shipyard has been boosted by a multi-million-pound contract which will create 200 jobs.

McNulty Offshore at South Shields is about to begin making a 1,600-tonne offshore substation which will be installed 16 miles off Suffolk.

The contract has been placed by Siemens, which is building 140 wind turbines to feed power to the substation. It will create 200 jobs for 12 months as well as providing work for the current 400 workers at McNulty.

The River Tyne’s development of a hub for offshore energy construction was accelerated last month with plans by Shepherd Offshore to build a £7.5m factory at the former Neptune shipyard in Wallsend, and engineering experts SLP to turn a nearby yard into its UK manufacturing base.

McNulty Offshore managing director Steve Keyworth said: "We recently decided to modify our strategy from purely offshore oil and gas construction projects to onshore oil and gas and renewable projects.

"The skills required are similar and the awarding of this contract is evidence that this is the right approach.

"This is just the start of some major renewable energy developments through the UK and Europe and we believe this marks the start of a highly successful period for McNulty. The skills that are required in the offshore windpower industry are similar to those on offshore oil and gas. This heralds the dawn of a great new future for the McNulty and for the River Tyne."

NOF Energy chief executive George Rafferty said: "This is a major endorsement of the transferable skills that exist in the North East oil and gas sector, which can be applied to the renewable energy industry.

"Hopefully this will signal the start of further contract awards in the renewables sector for the North East in the near future." Siemens was awarded the Greater Gabbard contract last June. This development will construct 40 wind turbines to generate electricity to power more than 415,000 homes.

Director of Siemens Energy Major Projects John Willcock said: "Siemens continues to be a major employer in the North East, so securing a highly skilled partner in the region is a priority for us.

"Based in South Tyneside with the knowledge, skills and expertise to exceed the project’s targets, McNulty is a natural partner."

Siemens employs more than 2,500 North East people in energy, industry and IT sectors with offices in Hebburn, Monkton, Heaton, Stockton and Durham.