Swan Hunter has laid 100 workers off as work starts to run out in its shipyard on the Tyne, it confirmed last night.

The second of two ships built on the Tyne by Swans will be officially named today.

The Swan Hunter shipyard, in Wallsend, North Tyneside, has nearly completed work on the Royal Fleet Auxiliary Lyme Bay.

John Mitchell, projects manager at Swans, said work would continue on fitting the ship after the naming ceremony and he hoped that no more workers would be made redundant as the yard fights to win contracts.

Swans secured the £140m MoD contract in 2000 to design and build the Lyme Bay and its sister ship, the Largs Bay, which secured the yard's future and revived shipbuilding in the North-East.

The Lyme Bay and Largs Bay are two of four vessels that have been built in the UK to Swan's design.

The Lyme Bay will provide logistic support to military operations, carrying up to 356 Royal Marines and a crew of 135.

It has a flight deck for helicopters, two 30-ton deck cranes for loading and space for military vehicles and battle tanks.

The vessel will go into service with the Royal Fleer Auxiliary next year after final commissioning and tests are completed.

Lady Elizabeth Fry will officially name the vessel at the ceremony at the yard this afternoon, in Wallsend, North Tyneside.