BOSSES at ship repair specialist A&P Tyne said the next few weeks could be crucial in the fight to save jobs at the company following a decision to mothball its yard in Wallsend, North Tyneside.

The company said redundancies were inevitable after it announced plans to close the 130-year-old shipyard.

But managers admitted the number of job losses among the workforce of 350 would depend on whether further orders for work could be secured soon.

A&P director David Skentelbery said yesterday a decision on the scale of redundancies was dependent on the order book during coming weeks.

Mr Skentelbery said: "We have some small projects in the pipeline right now but, as it stands, we will not be bidding for any larger projects until next year, which is unlikely to save jobs."

He said redundancies were likely to come from all areas of the business.

Workers at the Wallsend yard will move to the company's Hebburn site, in South Tyneside, which is larger and better equipped.

A decision on job losses is expected in the next few weeks. Mr Skentelbery said union representatives would be consulted before any announcement was made.

However, the director admitted the prospects for new orders were not good.

He said: "The market is very, very quiet. Shipping routes are changing and this is not helping our business."

Orders for A&P have fallen dramatically in the past three months, even though the company enjoyed a record six months at the start of the year, with sales reaching £31m.

The last major repair project for the company, for Italian shipping group Grinaldi, is being completed this week.

The closure, which is expected to save £500,000, is the latest blow to hit industry on the Tyne.

Decisions to mothball shipyards and a failure to attract new orders has meant the loss of 700 North-East engineering jobs in the past 12 months.

* Offshore engineering group Amec last night said it was still considering all options for its Tyneside site.

A spokesman said it was hoping to make a decision as soon as possible on the fate of the Tyne operation.

The spokesman said: "We are reviewing all options. Nothing is being left in or out at this stage. The downturn in future growth of North Sea operations is obviously something we are thinking about."

The company cut 500 jobs when work ran out in June.