BOAT Building and repair business, Tyne Slipway Engineering, has struck a deal to buy part of the troubled Cammell Laird group.

The South Shields business hopes to create more than 120 jobs at the Wear Dockyard, part of Cammell Laird, which went into receivership in April after it lost a £50m Italian cruise ship order.

Tyne Slipway is a family firm run by Jarrow-born businessman Harry Wilson and his three sons.

Already, more than 500 out-of- work shipyard workers have inundated the firm with applications for the possible jobs.

Mr Wilson refused to put a figure on the deal - and stressed that it would not be completed until he has negotiated the transfer of the lease on the yard from Sunderland City Council.

He said: "We have reached an agreement with the receivers for the plant, equipment and the site, but we are still in talks with the council for the lease.

"We have big plans for expansion if we get the go-ahead, with upwards of 150 jobs created.

"We have already been inundated with calls from former shipyard workers looking to get back into the business, but, until it is all signed, sealed and delivered we don't want to give them false hope. However, we are very confident of completing a deal with the council soon."

Tyne Slipway employs about 18 staff, rising to 30 at peak times.

Completion of the deal would rapidly increase the size of the company, which is a partner of Norwegian firm Brunvoll AS.

Mr Wilson, who has been in the boat building business for more than 40 years, added: "We build pleasure boats up to 22 metres long, and carry out ship repairs. We don't have the capacity to build ships, but that's never been our business.

"We are in this business for the long term. All my three sons are involved in the business and I want to give them something they can carry on."