Yorkshire Dry Dock is rescued

Loss-making Hull shipbuilder Yorkshire Dry Dock is expected to be bought from its administrators this week. The buyer, George Prior Engineering of Great Yarmouth, is understood to be bidding for six or seven new contracts for the yard. The yard lost up to £3m on its last three orders before administration in June. A loss […]

Loss-making Hull shipbuilder Yorkshire Dry Dock is expected to be bought from its administrators this week.

The buyer, George Prior Engineering of Great Yarmouth, is understood to be bidding for six or seven new contracts for the yard.

The yard lost up to £3m on its last three orders before administration in June. A loss of £900,000 on one of these ships was made good by Yorkshire Dry Dock’s parent company, Whittaker Holdings of Hull.

There was just one order on its books when Ernst & Young administrators Hunter Kelly and John Ayre were appointed.

To be renamed George Prior Engineering (Yorkshire) the yard now employs only two people. In June there were 99 and earlier this year there were 180 staff. The last ship built was the BP oil exploration support vessel Grampian Frontier.

When the yard went into receivership it was awaiting responses to tenders submitted for the construction of 14 ships.

The collapse was blamed on lower prices quoted by state-subsidised shipyards in Germany, Greece and Spain.

Another reason was implied when Ernst & Young claimed that at a 29 August meeting creditors `voiced strongly their concerns about the actions of the directors’ before the yard went into administration.