RUMOURS that the company which took on one of the region's best-known ship repair yards has been asset stripping have been hotly denied by the company's chief executive.

The Northern Echo has been told that in the past few days, the former Cammell Laird yard at South Bank, Teesside, has been stripped by new owners A&P Holdings.

HGVs loaded with fork lift trucks and other welding equipment have been seen leaving, despite a promise to the contrary.

It is understood the wagons have been heading to Chatham and Southampton, where A&P have other installations.

The rumours have been hotly denied by chief executive David Ring although Redcar MP Vera Baird remains unconvinced.

Mr Ring said the company wanted to come into the area and added: "We are still hoping to get things open when the work allows. It does not help if people draw their own conclusions and frankly people are misinformed."

Ms Baird said: "If the information I have received is true then this is an extremely surprising development when David Ring, less than two weeks ago, assured me that he intended to reopen the yard for work in the next year.

"A&P have a reputation for asset stripping and if that is true they seem to be behaving in exactly the same way here, I sincerely hope I have not been misled."

Jimmy Skivington, from the GMB union, said: "It doesn't look good. As far as I am concerned, exactly the same thing happened with the Kvaerner yard at Port Clarence. They took all the equipment out after having an option to lease the yard. They made all kind of noises saying they were not going to close the yard and in a matter of months it was closed. This is not something we are not familiar with and if people are taking equipment out, it is very worrying."

The yard was mothballed earlier this year when the company went into receivership, with the loss of 110 jobs.

In the summer it was bought by Southampton based A&P Holdings, which said it had an option to take a lease on the yard if work came up in the future.

But waiting in the wings is former yard owner Eric Welsh, who believes he can turn around the yard's fortunes.

Ms Baird, Mr Ring and Mr Welsh are due to hold talks in the next couple of weeks about a compromise deal.