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Yard boss warns of more job cuts if navy deal is lost
FRESH FEARS ... A&P Tyne managing director Stewart Boak.
A SOUTH Tyneside shipyard boss has warned of the “significant” threat to jobs ahead if a major defence contract is lost.
There are concerns about the future of an order to be completed at A&P Tyne, Hebburn, if a rival yard closes.
Just before Christmas, part of a £55m contract for one of two planned aircraft carriers was transferred to BAE Systems in Portsmouth – where there is a lack of work – triggering more than 90 redundancies at the borough yard.
Now there are fresh fears over the future of the Portsmouth yard, and the possible cancellation of the next phase of the Ministry of Defence (MoD) carrier contract to be completed by A&P Tyne.
Stewart Boak, managing director at A&P Tyne, said the loss of the contract to build the centre block unit CB03 for aircraft carrier HMS Prince of Wales would have a big impact on the yard.
He said: “A&P have done all that has been asked of us in delivering a high quality, cost-effective, on-time product for our customer BAE Systems and the MoD.
“Any reorganisation or restructure of BAE Systems and any impact that this may have on A&P in the future is beyond our control.
“Obviously, should any restructuring result in the cancellation of CB03 on ship two, then this will have a significant impact on the A&P business, which would be extremely disappointing, when you consider what has been achieved and delivered on the contract to date.”
The Hebburn yard has signed contracts with BAE Systems to build centre block units for both the Prince of Wales and Queen Elizabeth carriers.
Mr Boak added: “The requirement for A&P to build CB03 for the second in class HMS Prince of Wales, commencing early 2013, still remains in place.
“However, should BAE Systems look to consolidate its operations to one shipbuilding site, then A&P will remain available to provide support in maintaining the UK shipbuilding capability, however we can.”
BAE employs 1,500 people at its Portsmouth yard, with another 1,500 in ancillary roles. There are concerns the Portsmouth yard could close, with work being transferred to the company’s yards on the Clyde in Scotland.
A BAE spokesman 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.”
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Tuesday 22 May 2012
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