Super-yacht builders to create 800 jobs

7:17am Wednesday 9th April 2008

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By Gareth Lewis »

AN American luxury super-yacht maker is to open two new bases in Hampshire creating 800 jobs, the Daily Echo can today reveal.

Palmer Johnson, a US firm which builds bespoke multi-million-pound yachts up to 100m in length, is to create a state-of-the-art manufacturing centre in Hythe and another in Woolston, Southampton.

The Solent has an international reputation for recreational boat design and construction

Jimmy Chestnutt, director general of Southampton Chamber of Commerce

The super-yachts, which will be sold to millionaires around the world, will be the largest leisure craft in production in the UK and the operation will rival Dorset's world famous Sunseek-er boatbuilding operation.

The deal was put together by development agency Seeda, which said Hampshire had won a "fierce international competition" to attract the Wisconsin based brand and said the benefits would spin off into other industries.

An American icon with 90 years of history, Palmer Johnson's arrival in Hampshire is a reflection of the international prestige of the region's luxury yacht industry, which can claim some of the world's top designers and boat builders. It is also a further step towards the creation of a marine industry cluster in and around Southampton. It follows marine insurance name Lloyds Register decision to relocate its headquarters to the city, creating 100 new jobs and moving 450 high-wage posts from London.

The total of 800 new jobs more than offsets recent high-profile job losses, such as the closure of cigarette giant BAT's factory which saw 500 axed or pensions firm Skandia which has also shed staff recently.

Palmer Johnson plans to take over the old RAF base at Hythe in the short term. It will then return boatbuilding to the heart of Southampton by becoming the first industry tenant of the former VT site in Woolston, with its deep-water quay. The Woolston site, now re-named Centenary Quay, has just been submitted for planning permission for 1,500 homes and space for marine business. It is expected to be ready next year.

Brad Roynon, chief executive of Southampton City Council, said: "This is great news for the city, and will be a significant addition to the existing marine base. In particular attracting skilled marine jobs for Woolston has been a key objective and this will come about now.

"The fact that Palmer Johnson have chosen Southampton as the location to build a new range of super-yachts reinforces the message that Southampton is not only a regional player, but that Southampton is the right location for future investment and development."

Hampshire County Council executive member for economic development, Cllr Michael Woodhall, said: "This is a very exciting development, affecting employment in the Waterside parishes which historically have been associated with ship building and maintenance for many years. Bringing into Hythe, a company of this stature who clearly specialise in a very niche market, employing highly skilled operatives, will give an enormous boost to the economy of Hythe and the surrounding communities."

New Forest District Council leader Mel Kendal said: "This is very exciting news and a marvellous opportunity for the economy of the New Forest. This council has long pressed for the Hythe site to be used as a key centre for the marine industry."

Business leaders also welcomed the development A spokesman for trade group Business Southampton, which represents around 70 local firms, said: "Southampton has a fantastic maritime heritage and it's excellent to see businesses choosing the city for its many skilled marine workers. It is great news."

Jimmy Chestnutt, director general of Southampton Chamber of Commerce said: "The Solent has an international reputation for recreational boat design and construction. Palmer Johnson will create high quality jobs and the company will both benefit from and add value to the Solent cluster of high quality marine industries."

Palmer Johnson director Roland Staub said: "The new production facilities are integral to our overall growth strategy. Our UK expansion allows us to meet the global demand for our products. We are also keen to tap into the marine base of the region in terms of working with local suppliers and sub-contractors."