Swan Hunter may be forced to close

Industry sources claim that Swan Hunter?s Wallsend yard in England could close in less than two weeks because its order book is almost empty. Swan’s boss, Jaap Kroese, has revealed he is prepared to sell the yard to the right bidder, but only if the facility is preserved for shipbuilding.

“I want to sell the yard to somebody who is serious about making it work, as a shipyard. I want to know the workforce will be secure,” Mr Kroese added. The yard’s workforce has been slashed to about 250 following the latest round of redundancies and there are fears that work on the last remaining Royal Fleet Auxiliary vessel Lyme Bay could be transferred to a rival yard, possibly BAE Systems in Scotland. Ministry of Defence officials could announce next week if the project is staying at Swan’s or being transferred elsewhere.

The yard would be forced to close if it loses its last remaining contract and defence experts warn existing shipbuilders may not be interested in acquiring the yard because of its liabilities. Plans to create a ship breaking facility at Swan’s have been delayed while the Environment Agency decides if it will grant a licence to the company.