A north Devon shipyard which closed down with the loss of 500 jobs is set to be taken over.

Appledore Shipyard went into receivership over four months ago.

Devonport Management Ltd, which runs the dockyard in Plymouth, has announced it has recommended to its main board its wish to proceed with a multi-year lease of the Appledore facility.

DML chief executive Dennis Gilbert said: 'This is an important step forwards, both for DML and the former workforce at Appledore.

'If we do proceed it is going to be a real challenge to get this operation up and running again.

'We will need support from all individuals and organisations, within the region and nationally, who can influence, in any way, shape or form, the success of the manufacturing and shipbuilding sector in the south west.'

DML said the intention was to concentrate on specialist ships, primarily military and the super yacht market.

The Appledore yard currently had no orders or workload.

Roy Harkness, a GMB union spokesman at the yard, said that DML's announcement was 'a start'.

'It is good news that the yard is going to open again and will not be flattened. But there is little work in prospect for this year, and that will be a priority.'

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