News Article

One of the world’s biggest shipping groups is relocating part of its business to the North East.

The Maersk Company Limited, which currently runs its UK operations from Canary Wharf in London, is transferring its ship management division to Newcastle Quayside.

The move, which will see some 40 staff relocate to the region, has been agreed thanks to vital advice and assistance from One North East and its regional partners.

Sector and Investment specialists from the regional development agency have worked closely with Maersk. This culminated in the awarding of £1.8m of Selective Finance for Investment (SFI) funding to finance the move, which will lead to around 100 new jobs being created over the next three years.

Alan Clarke, chief executive of One North East, said: “This deal is a major coup for North East England.

“The majority of Maersk’s UK operations are being relocated elsewhere in London, so for us to secure the shipping management division, bringing with it some 40 highly skilled, well paid jobs and the promise of many more to come, is fantastic news.

“We have a rich shipping heritage in the region, so it is fitting that one of the world’s biggest shipping companies has chosen to relocate part of its business here.

“This agency’s aim is to make the North East the location of choice for leading national and international firms, and this multi-million pound deal is yet another indicator that we are heading in the right direction to achieve this.”

The team transferring from London to Newcastle is responsible for the crewing and technical management for over 40 UK-flagged vessels operating around the world.

However, there are plans to create a design team and a technology support unit over the next couple of years, which will further increase employment.

Mark Malone, managing director of the Maersk  Company’s S hipping Division, said: “Tyneside’s history has been shaped by engineering, especially marine engineering.

“To date it remains a centre of excellence, with a high concentration of marine engineering resources and experienced shipping professionals.

“We welcome this opportunity to establish a strong maritime presence on Tyneside.”

The Maersk Company Limited is part of the A.P.Moller/Maersk organisation.
The UK-based activities are expanding, creating new job opportunities for shipping professionals in the North East.

Maersk’s decision to move to the region came about following a meeting between agency representatives and managers.  A cross-department team within One North East was able to provide assistance with location, a £1.8m SFI grant, and sectoral knowledge to secure the project for the region.

The facility, at Pandon Street in the quayside area of Newcastle, is expected to open later this year.

Margaret Fay, chairman of One North East, said: “I am delighted Maersk saw the benefits of relocating its shipping management division to the region.

“The company could have decided to base its expanding technical team elsewhere, but we were able to satisfy them that North East England has everything it needs to take the business forward.

“The move has enormous potential for the region. It will bring highly skilled and well paid jobs and further strengthen our bid to be the number one business location of choice.

“It is important to recognise the continued importance of the sector to the region’s economy.

“We are working hard to ensure that we continue to support and develop all areas of the sector, including maximising North East England’s involvement in the major projects on the horizon.”

The Maersk Company was founded in the Danish town of Svendborg in 1904 by a father and son. It now employs over 70,000 people in 125 countries, and operates 250 vessels worldwide.

For more information please contact: Leanne English, press office, One North East, on Tel: (0191) 2296738, mobile no: 07717 154278, or email:
Leanne.English@onenortheast.co.uk