Dry dock to reopen for ship-breaking

Dec 16 2009 by Peter McCusker, The Journal

TYNESIDE ship repairer A&P is preparing to open up its dry dock for ship-breaking work in 2010 as it looks to build upon an eventful 2009 which saw it change hands and land a £55m MoD contract.

A&P was taken over last July by the Cardiff-based Bailey Group, headed by property developer and entrepreneur Paul Bailey.

He previously held a 50% stake in A&P and has moved the headquarters from Hebburn to the Welsh capital.

The company, which is the UK’s biggest commercial ship conversion and repair business, has facilities on the Tyne, Tees and Falmouth and says it moves into 2010 with a strong order book for projects ranging from defence to sustainable energy.

Last month it secured a £55m Ministry of Defence contract to build sections of two new Queen Elizabeth Class aircraft carriers, which will secure more than 200 jobs on Tyneside over the next five years.

Bailey said: “The MoD contract for the Tyne is extremely important in helping us to maintain our very strong presence in shipbuilding, repairs and refits.

“It will help secure 210 jobs and further enhances our reputation as one of the leading ship repairers in Europe.”

He went on to say the group was branching into ‘green’ projects at Tyneside.

“Utilising an existing dry dock and two slipways we aim to strip – or reclaim – ships which at present are sent to dockyards in India.

“A licence has been granted for the project and A&P will seek a joint venture partner with specialist experience.

“The business could also handle dismantling of any large marine structures, such as oil rigs.

“It also has planning consent for an 80m-high wind turbine which will provide power for the dockyard, saving an estimated £100,000 a year.

“Surplus electricity will feed into the national grid. Construction is planned for 2010.”

Bailey said that half of the group’s 2010 shipping budget turnover was already committed, with MoD work, through life support contracts for the Royal Fleet Auxiliary, regeneration of two minehunters for the Lithuanian navy, maintenance of P&O ferries and Grimaldi car carriers. Other contract opportunities for warships are being pursued.