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A&P shipyard contract could be hit by BAE Systems review
by Iain Laing, The JournalFeb 6 2012
A MULTIMILLION-POUND contract to make part of an aircraft carrier on Tyneside could be affected as BAE Systems reviews its UK operations, it has been claimed.
The defence giant has confirmed it is examining its plans for all its work, which includes a £6bn contract to build the Queen Elizabeth and Prince of Wales carriers at Portsmouth.
Part of the work on the hull of the HMS Prince of Wales is being built at the A&P shipyard in Hebburn, and there are concerns about that contract if BAE decides to close its Portsmouth shipyard, which is leading the work.
A BAE source has claimed that subcontractors at the A&P yard on the Tyne and the Cammell Laird on Merseyside may feel the impact.
A&P won a £55m contract to build parts for the carriers last year. The yard completed its part of HMS Queen Elizabeth, ahead of schedule, which forms part of the flight deck and hangar – to Portsmouth early last year, where the warship is being assembled.
This year, it is building part of the hull of the second carrier. The yard, which has 250 workers, has been growing consistently in recent years and has a wide portfolio of work. BAE stressed it has yet to make any decisions, but an industry source has said that if it does close Portsmouth it could cost between £400m and £600m, including redundancies and asset write-offs.
In a contract signed in 2009, the Ministry of Defence guaranteed BAE work for the next 15 years and is bound to shoulder the expense of any yard closures.
BAE employs 1,500 people at the Portsmouth yard, while a similar number of jobs are provided in support roles.
But the programme could be consolidated at BAE’s yards on the Clyde in order to plug a hole in the shipbuilding workload between completion of the carrier and work on a new Type 26 frigate. A spokeswoman for BAE said: “As part of our business planning activity, we are reviewing how best to retain the capability to deliver and support complex warships in the UK in the future, in line with our commitments under the Terms of Business Agreement signed in 2009.
“This work is ongoing and we will keep our employees and trade union representatives fully informed as it progresses.”
The A&P Group took over the running of the Hebburn yard in 2001 and in 2009 it was bought by Welsh-based Bailey Group.
A&P’s shareholders include Manchester-based Peel Ports and private investors, including existing investors and directors of Liverpool-based Cammell Laird.
No one from A&P was available to comment.
by Iain Laing, The JournalFeb 6 2012
A MULTIMILLION-POUND contract to make part of an aircraft carrier on Tyneside could be affected as BAE Systems reviews its UK operations, it has been claimed.
The defence giant has confirmed it is examining its plans for all its work, which includes a £6bn contract to build the Queen Elizabeth and Prince of Wales carriers at Portsmouth.
Part of the work on the hull of the HMS Prince of Wales is being built at the A&P shipyard in Hebburn, and there are concerns about that contract if BAE decides to close its Portsmouth shipyard, which is leading the work.
A BAE source has claimed that subcontractors at the A&P yard on the Tyne and the Cammell Laird on Merseyside may feel the impact.
A&P won a £55m contract to build parts for the carriers last year. The yard completed its part of HMS Queen Elizabeth, ahead of schedule, which forms part of the flight deck and hangar – to Portsmouth early last year, where the warship is being assembled.
This year, it is building part of the hull of the second carrier. The yard, which has 250 workers, has been growing consistently in recent years and has a wide portfolio of work. BAE stressed it has yet to make any decisions, but an industry source has said that if it does close Portsmouth it could cost between £400m and £600m, including redundancies and asset write-offs.
In a contract signed in 2009, the Ministry of Defence guaranteed BAE work for the next 15 years and is bound to shoulder the expense of any yard closures.
BAE employs 1,500 people at the Portsmouth yard, while a similar number of jobs are provided in support roles.
But the programme could be consolidated at BAE’s yards on the Clyde in order to plug a hole in the shipbuilding workload between completion of the carrier and work on a new Type 26 frigate. A spokeswoman for BAE said: “As part of our business planning activity, we are reviewing how best to retain the capability to deliver and support complex warships in the UK in the future, in line with our commitments under the Terms of Business Agreement signed in 2009.
“This work is ongoing and we will keep our employees and trade union representatives fully informed as it progresses.”
The A&P Group took over the running of the Hebburn yard in 2001 and in 2009 it was bought by Welsh-based Bailey Group.
A&P’s shareholders include Manchester-based Peel Ports and private investors, including existing investors and directors of Liverpool-based Cammell Laird.
No one from A&P was available to comment.