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Last Updated: Monday, 17 July 2006, 07:21 GMT 08:21 UK
Tyne ship is towed to rival yard
The Lyme Bay is towed from Swan Hunter
The ship is being towed to the Clyde in Scotland
A ship has been towed out of a Tyneside shipyard after work to complete the vessel was handed over to a rival shipyard in Scotland.

The Ministry of Defence (MoD) announced last week that the unfinished ship Lyme Bay would be handed over from Swan Hunter to BAE Systems, at Govan.

The ship was towed out of the Tyne on Monday morning to begin the journey to the Clyde in Scotland.

The Tyneside yard, where up to 300 people worked, is due to be mothballed.

The MoD said it had been a difficult decision to take the work away from Swan Hunter but it was down to an increase in costs and delays.

Earlier this year, Swan Hunter was granted permission by the Environment Agency to dismantle ships and it is thought the yard's future could lie in that direction.

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