News September 2003

The Western Morning News reported on September 30 that hundreds of people turned out on Monday September 29 to express their support for Appledore Shipbuilders which, with no new orders, is facing closure.

The news that everyone at Appledore Shipbuilders had been dreading was finally confirmed Monday afternoon when it was revealed that receivers had been appointed to take over the operation of the business.

It was described as a "bitter blow" by management at the yard and the grim faces of the workers who spent much of yesterday standing at the yard gates were an all too clear sign that its impact will hurt many families.

Workers barricaded themselves inside the yard on Sunday and yesterday appealed for supporters to help them demonstrate the importance of the yard to the North Devon economy.

They were not disappointed and hundreds of people came from throughout the area to stand at the gates in a moving display of solidarity with the 550 workers at the yard, whose jobs look increasingly at risk.

Among those at the shipyard was 72-year-old Betty Fowler, whose father, husband and son had all worked there. "If this yard goes we'll have nothing. The workers at this yard have been left to dangle like yo-yos on a piece of string," she said.

But all the good wishes in the world could not stave off the gloomy tidings that Roy Harkness, the convener of the shipyard's joint shop stewards' committee, revealed early yesterday evening.

Mr Harkness climbed on top of a digger that had been placed at the shipyard gates as part of the barricade, to read a statement, the brevity of which only underlined the serious turn of affairs the workers' fortunes had just taken.

Mr Harkness said: "We have again met with the chairman and managing director of Appledore Shipbuilders and have to unfortunately inform you that as of close of business today - 5.30pm - no purchaser has yet come forward.

"As we previously informed you, the receivers, Tenon Recovery, will effectively be in charge of the company as of 7.30am tomorrow, September 30, at which time they will be in total control of the company's affairs."

Mr Harkness said company chairman John Langham was available to talk to any possible purchaser for the business.

"You can rest assured that anything that can be done will be done, and we will be guided from hereon in by our trade unions," he said. Earlier in the day, Mr Harkness revealed that there was furious behind-the-scenes activity by Kevin Curran, general secretary of the GMB, and Derek Simpson, of manufacturing union Amicus, with the aim of finding a new owner for the yard, which sent its last piece of work out earlier this month and has had no luck in securing any fresh orders.

Mr Harkness said then that the joint shop stewards' committee still believed it was possible for the shipyard to carry on building ships "for many years to come".

Even Appledore Shipbuilders' chairman Mr Langham and managing director Jim Wilson, in announcing that they could no longer run the yard, said they still felt that a potential purchaser was "waiting in the wings".

Mr Wilson said: "I have got a hunch that there is somebody standing in the wings waiting to move in when the receivers come in."

Mr Langham felt that "one way or another" a solution would be found to enable the shipyard to reopen.

Despite that sense of optimism, Mr Langham made it plain that the situation they found themselves in left them with no option but to call in the receivers.

"Appledore Shipbuilders has delivered its last ship. It now has no work in hand and despite every effort no new contracts have been secured," he said. "The company lost £1.3 million last year and in the first half of this year has incurred a further loss of £1.9 million.

"The yard has only been kept open for the last six months because of financial support from the shareholders totalling some £2.5 million in the form of loans and bank guarantees, all of which have now been lost.

"Sadly, under these circumstances the directors have no alternative but to close the yard and invite the appointment of a receiver as of today.

"It will remain the personal objective of Jim Wilson and I to work closely with the receiver in order somehow to ensure that shipbuilding continues at Appledore."

He said that although there had been some prospects of work, none of them seemed likely to provide work in the immediate future.

Torridge and West Devon MP John Burnett also had talks with Mr Langham and Mr Wilson after which he said that he hoped the appointment of receivers would be the prelude to interest from potential purchasers.

"The most vital asset of this company is the workforce, which is one of the best in the world," he said. "We shall do everything we can to secure your jobs and pensions.

"John Langham and Jim Wilson have assured me they want to see the business continue as an ongoing concern."

On Monday evening, workers at the yard were preparing for another cold night manning the gates. They were hoping that the hundreds of people who turned up to offer support yesterday will do so again today.

PRELIMINARY STATEMENT OF RESULTS FOR THE SIX MONTHS TO 30TH JUNE 2003

PRELIMINARY STATEMENT OF RESULTS FOR THE SIX MONTHS TO 30^TH JUNE 2003