Yard contract secures 200 jobs

The yard needed to win a big contract to see it through to 2005

The firm which runs a Devon dockyard has safeguarded 200 jobs after winning an Ministry of Defence contract to refit two warships.

DML, which runs Plymouth's Devonport Dockyard, had described its tender as a "must win" bid.

The work is to carry out so-called mini refits on the frigates HMS Chatham and HMS Lancaster.

It will be carried out next year.

'Survival issue'

The news comes at a crucial time for DML.

The yard needed to win a big contract to see it through to 2005 when there will be more MOD work available for it to tender for against its competitors at Rosyth and Portsmouth.

he company's Chief Executive, Dennis Gilbert, says it was a contract the yard had to win.

"This is a survival issue for us," he said.

"It puts us in a position where we've held onto the skills and we're in a position to compete for a much larger volume of work from 2005 onwards."

DML says it will continue looking for alternative markets.

But it says it must win Royal Navy surface ship contracts as part of its core business.