AROUND 200 new jobs are set to be created after a North-East shipyard landed a £15m conversion contract.

Cammell Laird in South Tyneside revealed it had clinched yet another major conversion contract, winning an order to convert the diving support craft CSO Constructor into a flexible pipe laying vessel.

Delighted Cammell Laird bosses revealed the yard fought off strong European and international competition to secure the order, for the Coflexip Stena Offshore Group.

David Dobson, general manager and director of Cammell Laird, said: "We are delighted to bring this worldwide subsea services group to Tyneside on such a prestigious conversion project.

"The work will create employment opportunities for Tyneside and will also secure work for the yard through to April 2001."

The contract is not expected to be shared with the firm's Teesside operation.

The order comes just a week after the Hebburn yard celebrated winning a contract to upgrade the helicopter support ship Argus, and is part of a number of major contracts won for shipbuilding and ship repair sector on both the Tyne and the Tees.

The vessel has already arrived on the Tyne for its six month stay, and work has started at Hebburn on the conversion contract.

It will involve the addition of more than 2,000 tonnes of new steel, two new deck cranes and three additional generators.

The project entails converting the vessel to undertake deep water flexible and rigid pipe laying activities together with deep water subsea installations. The contract will also include shot blasting and painting of all the vessel's ballast tanks.

The deal demonstrates Coflexip's faith in Cammell Laird as group vice-president offshore resources, Donald Carmichael explained.

"This decision strengthens the capabilities of the CSO fleet and enables the group to offer its clients, located in strategic development areas, cost effective solutions," he said. "It is pleasing that a European yard should be successful in competing for this contract, and meet the technical and schedule requirements.