The Chronicle

Shipyard seeking to land new submarine orders as it looks to the future

- By JONATHAN MANNING Business Reporter jonathan.manning@reachplc.com A&P shipyard

ENGINEERIN­G giant A&P North East is restructur­ing to allow it to win more work in the submarine and ship repair markets.

The shipyard, which has a base in Hebburn, has restructur­ed into two business units that will allow it to put more specialist focus on the two distinct markets.

Explaining the changes, David McGinley, managing director of Atlantic and Peninsula Marine Services Ltd, which comprises A&P Group, said they hoped to reap rewards.

He said: “Restructur­ing the North East business in this way allows us to take a much more specialist, focused and strategic approach to the submarine and ship repair sectors.

“We now have the seniority, expertise and resource we need to consolidat­e our position in these markets, promote growth and give even greater priority to our customers.”

As part of the restructur­e, A&P’s operation director Keith Henry has been appointed interim managing director.

The submarine business will be led by project director Patrick Kelly and production director Brian Peat.

A&P North East has found success in the past with its submarine work, and has previously won a contract to build sections of the Astute Class submarines.

It then used this experience to win an additional £10m contract to build further submarine models.

The ship repair business will be led by Mike Wappett, who will take up the role of marine director and will be supported by general managers at the firm’s Tyne, Tees and Great Yarmouth sites.

Mr Wappett previously worked as general manager of A&P Tees.

Simon Welch – who previously worked as finance controller at the Tees facility – has been promoted to financial controller North East and will now oversee the entire region.

A&P Group operates seven dry docks across four locations in the UK and carries out engineerin­g work for the commercial shipping, marine, offshore wing, oil and gas, civil nuclear and defence industries.

Last year, A&P was named as a “strong contender” to build sections of five Navy frigates.

But the Ministry of Defence halted the bidding competitio­n in July after it said it had received “insufficie­nt compliant bids” to run the process. The tendering process was restarted in August. In the tender document the MOD said it was looking to acquire five frigates for £1.25bn.

A&P Group Limited made a loss of £22,000 for the year ending March 31 2017.

The company blamed the loss on the delay of a major contract.

Restructur­ing the North East business in this way allows us to...approach the submarine repair sector

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