Mersey firm on brink of £234m defence contract

Dec 10 2007 EXCLUSIVE by Tony McDonough

cammell laird

BIRKENHEAD-based North West Shiprepairers and Shipbuilders is on the verge of clinching a £234m Ministry of Defence deal that will “underpin” the future of the yard and its staff.

The yard will maintain and repair 11 vessels for the Royal Fleet Auxiliary (RFA), which supports Royal Navy operations throughout the world, if it wins the contract.

The Ministry of Defence today confirmed that the company was one of two to be given preferred bidder status, and that the work was likely to be split between the two.

Such contracts are awarded on a five yearly rolling basis with regular performance reviews and involve servicing the vessels until the end of their operational life.

The company, which operates on the site of the former Cammell Laird shipyard and employs about 300 staff, has worked for more than two years on clinching the deal, and this is a significant step towards landing the contract.

Managing director John Syvret said: “This was a very important day in the company’s history. These contracts underpin the company’s future.”

Over the past two years the shipyard has completed £17.57m-worth of work on four RFA vessels and Mr Syvret added: “The company consistently delivers a good quality product on time and to budget, this is what the ship owners and operators want and need and leads to repeat business for the company.”

Minister for Defence Equipment and Support, Baroness Taylor said: “The new support programme will increase the availability and effectiveness of these crucially important ships. It will also generate significant savings through closer collaboration with industry, and sustaining industrial expertise.

"I am delighted that, subject to successful negotiations, two British companies will provide this crucial support to the Royal Navy. This is in line with our aims under the Maritime Industrial Strategy."

The contract will be formally awarded next year.