Partner Article

Teesside jobs boost

THE living quarters for the Queen Elizabeth and Prince of Wales aircraft carriers will be manufactured in the North East, creating 40 new jobs.

Hertel Technical Services, formerly known as McGill Services - the only supplier of modular accommodation facilities to the UK Navy - is also moving to a new 160,000 sq ft manufacturing facility at the former Visqueen factory on Yarm Road, Stockton, to prevent the work being carried out overseas.

The change of location meant that the firm was able to create the 40 new jobs to ensure the completion of the two-and-a-half year Ministry of Defence build contract in the region.

Hertel Technical Services, which holds a patent for the design of modular accommodation, was awarded the contract to make the modular cabins and wet spaces for the CVF (Carrier Vessel Future AKA Aircraft Carrier Project) by BAE Systems in 2008.

The funding for the bigger premises and increase its 28-strong workforce came from a £250,000 Grant for Business Investment (GBI) from regional development agency One North East with help from corporate finance specialist unw.

Hertel Technical Services commercial director Tony Scott said: “Given the availability and cost viability of utilising ‘in house’ resources and facilities overseas, we would have had to consider the manufacture of the modular cabins and bathroom units outside the UK. The downturn in economic climate meant that there was a strong commercial case for doing that.

“With the assistance received from One North East and the critical advice from unw we are absolutely delighted that we were able to make sure that the contract started and ended in the North East.”

unw partner Neville Bearpark said: “The defence industry supply chain remains an important part of the North East economy and we were thrilled that our advice has helped ensure that Hertel Technical Services will continue to thrive and create jobs in the Tees Valley.

“The level of support offered by Tees Valley Regeneration and One North East is further indication of the region’s commitment to supporting this important industry.”

One North East Director of Business and Industry Ian Williams said: “I am pleased that One North East’s investment will help secure this important project for the North East, which is creating and safeguarding jobs and will also provide a significant boost to the company’s supply chain.

“The Tees Valley Industrial Programme has allowed the agency and our public sector partners in the Tees Valley to act quickly and decisively to support projects. We will continue to work on investment opportunities of this nature creating more jobs in the Tees Valley in the coming months.”

Tees Valley Unlimited Business Investment Director Neil Kenley said: “We’ve been working closely with the company to support it in its application for funding through the RDA so I’m delighted this has been successful, creating jobs and securing investment in the area.”

The project began in January and is due for completion due in December 2012. Hertel Technical Services is currently bidding for other similar contracts which it is confident about securing.

This was posted in Bdaily's Members' News section by Ruth Mitchell .