Managers at the 130-year-old A&P Tyne in Wallsend are moving the yard's 350-strong workforce to their more modern site in Hebburn.

The workforce, as well as contractors, will be kept on for the time being but future redundancies are a possibility.

Managing director at the yard, Fred Newman said jobs would "inevitably" go, but did not know how many as yet.

The news comes just two months after Amec took its Wallsend yard out of operation.

'Faced with void'

Mr Newman said: "We have explained the situation to staff and employees and as a result of a gap in orders redundancies will be inevitable."

He said work had disappeared following what had been the yard's most successful year.

Up until June, the yard turned over �31m but he said it was now faced with a void.

He added: "We are looking for major contracts internationally but there is nothing visible."

Mr Newman said the Wallsend yard would close next month and the firm would concentrate on completing a �1m contract to overhaul a car carrier.