NINE 'ghost ships' will not be recycled at a North-East shipyard, it was revealed this morning.

Able UK, which had won a contract to dismantle up to 13 vessels at its facility in Hartlepool, said a contract with the US government had been renegotiated.

It means that nine US Reserve Fleet ships originally destined for the UK will no longer be broken up on Teesside.

The company said it still wished to recycle the four ships that were currently moored on the River Tees, if permission was granted.

Peter Stephenson, chairman of Able UK, said: "We are pleased that we have been able to agree with the United States Department of Transportation Maritime Administration that our contract for the recycling of the four vessels continues.

"It is disappointing that, after all the efforts of so many people, the opportunity to bring the additional work, which would have been generated through the other nine vessels, has been lost due to the delay."

Full story and reaction in tomorrow's Northern Echo