Cammell Laird To Cut More Than 300 Jobs

Struggling British shipbuilder Cammell Laird, which called in receivers last week, is to mothball its yard at Teesside, northeast England, and cut over 300 jobs nationally.

Accountants PriceWaterhouseCoopers, who are acting as receivers, said on Wednesday there would be 110 job losses at Teesside, 150 cut at Birkenhead, northwest England, and around 60 cuts at Tyneside, northeast England.

The company, whose main shipyard was set up in 1824, had laid off an unspecified number of U.K. workers in recent weeks, PriceWaterhouseCoopers said. The group has a total U.K. workforce of nearly 2,000.

Cammell Laird entered receivership after a series of cancelled orders hit its finances, causing it to suspend trading in its stock and bonds. Its shares plunged after Italian cruise operator Costa Crociere cancelled a 51 million pound ($72.72 million) contract, and on concerns a key $500 million dollar deal with U.S. cruise ship firm Luxus could fall through.

"The (Teesside) yard will be mothballed with essential maintenance works carried out by a staff of 40. 110 workers will be made redundant," PriceWaterhouseCoopers (PWC) said in a statement. However, a PWC receiver was still hopeful of finding a buyer for Cammell Laird.

"We are encouraged by initial interest shown by prospective purchasers and remain cautiously optimistic of achieving a going concern sale," the receiver said.

The receiver has held talks with the UK's Ministry of Defence over awarding new contracts, and added he was confident the department would complete existing contracts with the shipbuilder.

Venture capital firm Alchemy denied press reports this week that it was a possible bidder for Cammell Laird; shipbuilder Swan Hunter has also been touted as a prospective buyer.