THE 250-year-old boatyard of James Miller and Sons in the East Neuk of

Fife, which closed last autumn with the loss of almost 40 jobs, is to

reopen.

A new company, led by former production director William Syvret, has

been set up, aiming to sustain and develop boat and ship repair

operations at St Monans, and its secondary facility at Methil.

The good news for laid-off workers in the fishing community is that 10

jobs will be provided in the first year, with prospects of a build-up of

skilled workers who previously worked with Miller's, should orders

emerge. At Methil, the facility can cope with ships of several hundred

tonnes.

The unexpected development follows a decision by Fife Regional Council

to provide a business loan to the new company, which will be named

Miller (Methil) Ltd.

As owner of the slipway at St Monans, the council has also agreed to

transfer the lease of the slipway to the company.

Other public and private sector finance is being sought, although Mr

Syvret declined to say how much investment was involved.

He envisaged that business development would be on ship repairs, and

looking to an upturn in the market, ships of several hundred tonnes

could be refitted and repaired at the Methil premises.

Confirming the decision to support the new venture, the convener of

Fife Regional Council, Mr Robert Gough, said he was delighted to see a

return of the industry to St Monans, which had existed since 1747, and

the retention of ship repairs and refitting at Methil.

He added: ''The restart will also provide the opportunity to make use

of some of the skills of craftsmen whose work has carried the Miller

name to many corners of the world.

''Initial employment levels are realistic. It is to be hoped that the

new management team will be able to secure work from previous customers,

and win business from rival yards in England and elsewhere. We are glad

to be taking part in this challenge.''