Babcock closes Devon's Appledore shipyard as orders run out

Babcock International, the engineering and defence firm, is to permanently close its 163-year old shipyard at Appledore, Devon, with workers blaming government delays in giving out new battleship contracts.

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The Ministry of Defence contractor said it had taken the “difficult” decision after orders ran out. In 2017/18 Appledore – which employs 199 people – generated only around £24m of the group’s total underlying revenues of £5.4bn.

The listed firm said: “Babcock very much regrets having to take this course of action and recognises the impact it will have on its dedicated and professional workforce.”

Babcock will now launch a consultation period ahead of the site lease ending in March 2019, and said it would offer “relocation opportunities” for all staff.

The Unite union blamed the closure on the loss of a contract to Italian yard Fincantieri, and said it would be asking for matter to be raised “as a matter of urgency” in the House of Commons.

Assistant general secretary Steve Turner added: “This shameful decision is a betrayal of a skilled, loyal workforce and their community.

“While we press the company to think again, government must wake up to its role in today’s announcement.

“At a stroke, ministers could secure the future of Appledore by lifting the delay to contract the Type 31e frigate programme and guaranteeing that the Royal Navy’s new fleet solid support vessels are designed and block built in yards across the UK.

“A continued failure by ministers to intervene could leave a yawning capability gap in the UK’s shipbuilding industry.”