Fresh hopes for Swan Hunter jobs
Apr 14 2005 By Guy Anderson, The Journal
McNulty yard will 'almost certainly' be sold
A troubled Tyne offshore industry yard will "almost certainly" be sold, administrators said yesterday, despite their renegotiating the multi-million pound contract which put the company in jeopardy.
More than 340 jobs were put in doubt last week when directors of McNulty Offshore in South Shields called in receivers last week after a financial dispute with a major customer.
The yard had been building a 4,000-tonne accommodation module for delivery to Exxon Mobile this month.
Administrators KPMG successfully renegotiated the contract with French contractor Technip, but conceded that there is little chance of the company returning to the hands of the existing McNulty directors.
A spokesman for KPMG said: "An agreement has been reached with the contractor to complete the existing module in the yard, which paves the way to a trade sale.
"McNulty Offshore Contracting is on the market, and a sale is the administrators' most likely outcome."
Fears for the future of McNulty - which still has at least 12 months of firm orders despite the administration order - comes as shiprepair company A&P Tyne continues to try to sell its Wallsend site which it mothballed last year.
There are fears it could be turned over to housing.
Kevin Rowan, regional secretary of the TUC, said: "It is clear that industry on the Tyne is in a vulnerable and precarious position.
"McNulty has joined a list of other yards in trouble. If it is sold, it is to be hoped that it will be to an industry operator and not a housing developer."
