Birkenhead shipyard kicked out

Merseyside shipyard group Northwestern Ship repairers and Shipbuilders has had its lease at the former Cammell Laird shipyard cancelled. The move throws into doubt plans by Northwestern to expand its ship repair and conversion operations on Merseyside.

Landlord Reddington Finance has exercised a contractual right to cancel the lease with three months notice. The lease had just two years left to run. Northwestern must now vacate the yard by the end of August. As a consequence, A&P Birkenhead will cease to trade from that date even though the yard currently has a full order book but cannot bid for further work due to the situation. Northwestern also operates from dry docks at Bidston in the Wirral and Clarence and Canada docks in Liverpool. The company was set up shortly after the collapse of Cammell Laird shipyard in 2001.

Last week Reddington said it wanted to see the continuation of shipyard work at the site in perpetuity when it unveiled a £1.4bn plan to redevelop the rest of the former Cammell Laird shipyard. Yesterday, Reddington’s site director, Mike Ryder, said the company still stands by that undertaking, but added that this might not be with Northwestern. He said: “We have been approached by several ship repairers. We are looking for a sustainable business to ensure the rent is paid. We want to ensure the best possible covenant.”