PAUL Shepherd is no longer chairman and managing director of the York-based Shepherd Group, it was disclosed today.

A corporate spokesman confirmed that the eldest of the three involved Shepherd brothers was "relinquishing his position" at the head of the £500 million-plus turnover group to concentrate on its construction division, of which he is chairman.

Instead he will defer to a new supremo who will take charge in the spring. Recruiting has already begun for this chief executive - with the net being spread wider than members of the Shepherd family.

Also reporting to the future new superboss will be Patrick Shepherd, chief executive of the manufacturing divisions, including Portakabin, Yorkon, Portasilo and Portastor Communications; and Mark Shepherd, chief executive of the property division (Shepherd Homes and Shepherd Development).

Paul Shepherd, who has held the top post for five years following the retirement and subsequent death of his uncle Colin, declined to talk to the Evening Press through his press spokesman.

The spokesman said: "The group board has been in discussion about this for some months."

Into Paul Shepherd's place has stepped Alan Fletcher, who has been non-executive deputy chairman since 1996 and now becomes non-executive chairman. Mr Fletcher, well-known for his chairmanship of the Vector Industries conglomerate, has a background in venture capitalism.

One Shepherd insider who refused to be named said: "A lot of us are surprised that the family has handed over control to the outside."

But the Shepherd Group spokesman said: "There is no intention of taking the group public.

"For some months the group board has been in discussion about organisational structure, and it has now reached its conclusions.

"It is part of a sharper focus on operational management within the three divisions of the group - construction, manufacturing and property, with a split in the roles."

Updated: 11:06 Tuesday, November 20, 2001