The UK Government has announced that a commercial deal was secured with Navantia UK, a subsidiary of the Spanish shipbuilding company, to ensure the future of Harland & Wolff, safeguarding thousands of shipbuilding jobs.
The precise amount paid by Navantia for Harland & Wolff’s assets has not been revealed, though reports suggest the figure is £70m (around $88m).
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This transaction, which covers the Belfast-based company’s four shipyards in the UK including two located in Scotland, is poised to enhance the UK’s industrial capabilities and secure the employment of more than 1,000 workers.
Navantia UK’s infusion of capital into the British industrial sector is set to open doors for additional naval projects across Harland & Wolff’s nationwide shipyards.
UK Business & Trade secretary Jonathan Reynolds said: “This deal is a major vote of confidence in the UK from Navantia, which will not only secure the future of UK shipbuilding but protect 1,000 jobs across the country and bring future investment into shipbuilding right across the UK.
“National security is the foundation of our Plan for Change – without it we can’t deliver on our milestones to raise living standards across the UK – with good skilled productive jobs.”
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By GlobalDataThe acquisition plays a critical role in fulfilling the UK Ministry of Defence’s agreement with Navantia for the construction of three Fleet Solid Support (FSS) vessels. These ships are tasked with provisioning munitions, spare parts, and other essential materials to UK aircraft carriers.
These FSS vessels are integral to maintaining the operational effectiveness of the UK’s Carrier Strike Group by ensuring consistent supply lines.
The completion of this deal is pivotal for preserving domestic shipbuilding expertise and maintaining manufacturing jobs within the country.
Collaborative efforts between the government and Navantia UK have led to a revised arrangement concerning the existing FSS programme contract.
This revision is based on commercial terms that introduce only essential modifications to guarantee Navantia’s commitment to constructing all three naval ships as per the contract.
Execution of this deal is contingent upon receiving regulatory consents.
In a statement made in October, Northern Ireland Economy Minister Conor Murphy, expressed that Navantia is well-suited to take over the Belfast-based shipyard operations of Harland & Wolff.
Earlier in January 2023, Defence Equipment & Support awarded a £1.6bn contract to Team Resolute, which includes Harland & Wolff, BMT, and Navantia UK, for the delivery of three FSS ships to the Royal Fleet Auxiliary.
2023 marked the officialisation of BMT’s role in the Royal Navy’s future FSS programme through a sub-contract with Navantia UK.
