PRINCESS Yachts has begun re-employing workers as part of a plan to enter the super-yacht market as the economy improves.

The Stonehouse-based luxury boat firm has already brought back about 20 of the workers made redundant earlier this year, and intends to add a total of about 80 staff after linking with City College Plymouth to create a training scheme expected to start this year.

The company wants to increase its skilled workforce so it can produce boats of more than 32 metres and compete in the growing super-yacht market.

In order to do this it is now operating inside its new base in Devonport dockyard.

The firm will recruit workers to be employed as trainers, or to free up other staff for such a role.

Princess Yachts has also built a mock-up of its new 32m flagship, inside its 15-acre South Yard base.

The company said that, although it has been affected by the economic downturn, it is still investing and is committed to Plymouth.

Princess Yachts has been hit, like other firms, by the recession, and in May announced 261 redundancies. But in June, it said it would invest up to £20million on a factory at Devonport.

Managing director Chris Gates said the economy was still a problem and added: "We are a long way from seeing a strong return to where it was before the credit crunch."

But he stressed the firm was 'well prepared' to face problems and said: "We are in an extremely difficult market, but in a strong enough position to drastically increase our development expenditure, expanding our training operation and see some places open up for people we made redundant earlier in the year,"

For a full interview with Mr Gates, see Business & Jobs, Page 3