BIRKENHEAD is to become a major base for Royal Navy ship maintenance on the back of a massive contract that will sec- ure the future of the town’s main shipyard for decades.

Wirral-based Northwestern Shiprepairers and Shipbuilders, which operates from the former Cammell Laird dry docks, has secured a contract worth £250m over 25 years.

The deal with the Ministry of Defence represents a huge official stamp of approval for the progress made by the shipyard on its road to recovery, following the collapse of the business in 2001.

Northwestern will be responsible for the maintenance of up to a dozen Royal Fleet Auxiliary ships used by the Navy to carry supplies around the world.

The company has been carrying out some ad hoc contracts for the Royal Navy for several years now, but this new arrangement, to be formally announced on Monday, means the shipyard can rely on a steady flow of work for years to come.

Northwestern has enjoyed strong growth in recent years. It posted record profits and turnover in latest set of accounts.

The Birkenhead yard generated business worth more than £41m last year, with profits before tax at £4.3m.

The figures are more than double the previous year, and are expected to be eclipsed by trading during the current year.

The Navy contract to be announced on Monday is a record for the shipyard.

Until now, its biggest Ministry of Defence order, secured in January, 2007, was worth £28m.

Other major shipyard clients include Liverpool- based Bibby Line Group.

The company is planning a relaunch when it brings back the name of Cammell Laird in the near future.

The shipyard business is owned by entrepreneur John Syvret and Peel Ports, the owner of the Port of Liverpool.

The new contract will secure hundreds of jobs at the shipyard and could create many more.

Mr Syvret has gradually rebuilt the shipyard after its former owner, the Stock Market-quoted Cammell Laird, collapsed into administration.

The shipyard closed its doors in April, 2001, after an Italian cruise line, Costa Crociere, decided to withdraw from a £51m contract to insert a new section into one of its vessels, with officials claiming that the work was running too late to allow its ship to be ready in time for the next cruise season.

Nobody from the company or the MoD was available for comment yesterday.

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