Palmer Johnson said today it will be closing its UK operations in Hampshire, with the loss of around 110 jobs. The site in Hythe Marine Park, Southampton, recently saw the launch of the US builder's first UK-built superyacht — the 51m Sport Yacht (pictured).

The company had also been planning to build a new facility in the former VT shipyard in Woolston, Southampton. The Wisconsin-based builder, which received planning permission to build the yard last month, had forecast the creation of about 800 local jobs.

"We have decided that with the world economy as it is, along with excess capacity offered by our base in the United States at the Wisconsin Shipyard, that we would wind down the UK operations at this time and move the entire Sportyacht programme to the Palmer Johnson facility in Wisconsin," said Mike Kelsey, Palmer Johnson president, in an email to IBI.

Kelsey said there are currently five yachts under construction at the Sturgeon Bay facility.

Superyacht Business, 10 August 2010