I have a paper by Fred Oman about this development but as its quite large I will need to break it into smaller sections
Part 1
The Integrated Development of the Tyne Shipyards of Swan Hunter Shipbuilders
by F. J. OMAN
13th January, 1975
Introduction
Swan Hunter Shipbuilders are currently undertaking large scale development projects in three of their shipyards, initially to improve each individual yard, but mainly as part of an integrated development programme for the whole of their shipbuilding facilities on the River Tyne.
This second phase of major development of facilities in- volves capital expenditure of almost £11 million and is principally concerned with the creation of a new ship-
building complex, on the site of the former shiprepair yard of Vickers Limited at Hebburn, and the development of the building berth facilities at Wallsend Shipyard. Two smaller projects involving the development of the berth facilities at Walker and South Shields Shipyards complete the current development programme.
Before describing the current projects, it may be helpful to examine the developments which have occurred within the company since the amalgamation of all the ship-building interests on the River Tyne in January, 1968, to form Swan Hunter Shipbuilders Limited. Just prior to this date. Swan Hunter Limited had acquired the John Readhead Shipyard at South Shields to add to its existing two facilities at Wallsend. The amalgamation of the other shipbuilding companies on the River Tyne, as recommended in the Geddes Report, brought together the remaining two shipbuilding yards of Vickers Limited at Walker and
the Hawthorn Leslie Shipyard at Hebburn, making a total of five shipyards in all. The Haverton Hill Shipyard, previously owned by Furness Limited, was added in 1969.
The early years of the new company, 1968 and 1969, were devoted to streamlining the organisation and integrating the newly grouped facilities to ensure that the new consortium operated at maximum efficiency on a group basis. It was realised that, in time, it would be necessary to develop the steel-working facilities to increase the total
production of steelwork, but the first priority was to establish the corporate identity of the group. Meanwhile, certain of the outfitting functions could be rationalised, central manufacturing facilities being established for joinery, engineering workshops, blacksmithing and sheet-metal production. These centralised facilities were completed in early 1969 and have operated very successfully from their inception.
The policy of integrated operation of the new ship-building group led to the establishment of centralised technical and commercial departments. Following these early
projects to rationalise and improve the operation of the new facilities, it became apparent that the development of the steelwork manufacturing capability was the next essential to assist in meeting the group commitments. Several projects were examined in depth, culminating in the decision in February, 1970, to proceed with the first phase of the major developments involving the construction and installation of new steel stockyards and
treatment lines, Burning Hall and Panel Hall at the Wallsend Shipyard. Whilst this major development was centred on one shipyard, it was nevertheless an integrated development inasmuch as 50 per cent of the output from the panel production line was for export to the other ship yards on the River Tyne. The shotblasting and treatment facilities, together with the new flame cutting facilities, also provided a centralised service to the other shipyards in the group. The development project further strengthened the inter-dependence of the Tyne shipyards because of the close liaison necessary to make sure that the centralised steel- working facility operated both efficiently and economically.
Following the completion of this development in September, 1971, further schemes have been considered: in particular, a complementary berth development at Wallsend, with the aim of achieving a balance between preparation, fabrication and erection and thus considerably reducing the cycle time for ship production.
The practice in Swan Hunter Shipbuilders is to under take a financial justification for every project involving capital expenditure before submission to the Board of Directors for approval; normally a return of the capital invested would be expected within a ten year period on major development projects.
The three main projects at Wallsend Shipyard, Walker Shipyard and the Hebburn Shipbuilding Dock were examined financially and the investment return periods ranged from two years to eight years. Swan Hunter Ship-builders have also adopted the policy of funding all development expenditures from their own financial resources without recourse to government loans and the decision to proceed with a major development project is normally made on the basis that it is financially viable within the known order book.