Stricken yard takes back 50 workers

RETURN TO WORK ... about 50 staff have gone back to work at McNulty Offshore.
RETURN TO WORK ... about 50 staff have gone back to work at McNulty Offshore.

DOZENS of workers have been taken back on to complete an order at a South Tyneside yard forced into administration.

About 50 staff, who previously worked for McNulty Offshore, have been re-employed as the search for a buyer for the stricken yard continues.

More than 100 jobs were axed last week at the yard in Commercial Road, South Shields, after administrators were called in.

Orders had dried up at the facility, which has been a major industrial player in the offshore field for about 25 years.

The administrators of McNulty Group Holdings have confirmed the re-employment at McNulty Offshore Construction of approximately 50 people who previously worked for the company.

Mark Firmin, joint administrator and KPMG’s northern head of restructuring, said: “We are pleased to have reached an agreement with one of the business’s major customers, which sees McNulty Offshore Construction continue to work on a key contract.”

Administrators would not reveal any more details about the contract which is set to be completed at the South Shields yard.

But KPMG did confirm it is talking to other customers about fulfilling further contracts, while continuing to market the business for sale.

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McNulty, which specialises in construction engineering, pipe and structural fabrication and project management services, has been hit by a decline in global demand for large capital expenditure projects.

South Shields MP David Miliband has met with KPMG and said he was “impressed” by their determination to find a buyer for the struggling yard.

GMB regional officer Mick Blench welcomed the recruitment of the former McNulty Offshore staff.

He said: “There are several incomplete orders in the yard, and there are some delicate negotiations going on.

“But as long as they are taking some men back on at the yard, we are quite happy.”

A small number of workers made redundant when McNulty collapsed have found work at A&P Tyne, Hebburn, which is building up its workforce after making redundancies of its own late last year.

But 27 of the 33 staff at McNulty’s Aberdeen base have made redundant.

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