Manufacturing & Supply Chain

Navantia, a Spanish state-owned shipbuilding company specialising in the design and construction of high technology military and civilian vessels, is in discussions with Harland & Wolff to acquire its operations across four sites: Belfast in Northern Ireland, Appledore in the South West of England, and Methil and Arnish in Scotland. Harland & Wolff went into administration in September. The acquisition will strengthen Britain’s industrial capacity whilst preserving more than 1,000 jobs.

The deal will enhance UK shipbuilding, defence and offshore wind industry capabilities, developing both a highly skilled workforce and a robust British supply chain. This will strengthen the country’s sovereign industrial capacity.

Under the proposed agreement, which remains subject to completion and regulatory approvals, Navantia UK will manage all four facilities, bringing its extensive expertise in shipbuilding, fabrication, complex programme management and fostering knowledge transfer.

As prime contractor for the Fleet Solid Support (FSS) programme, Navantia UK leads the construction of three ships for the Royal Fleet Auxiliary to support the Royal Navy’s UK Carrier Strike Group. These vessels will be built across facilities in Belfast, Appledore and Puerto Real (Cádiz, Spain).

The integration of Harland & Wolff’s facilities will ensure seamless delivery of the FSS ships by minimising programme risks and streamlining construction. The deal is expected to be completed in January 2025.

Navantia UK commends the UK government’s commitment to the FSS programme and welcomes the opportunity to build upon Harland & Wolff’s proud heritage. The company will work diligently to deliver this essential capability for the Royal Navy whilst strengthening Britain’s defence and industrial base for the long term.

UK Business Secretary Jonathan Reynolds described the acquisition deal as “good for jobs” and “good for national security.” He commented: “This is a good deal for Harland and Wolff, its employees, and the British shipbuilding industry more broadly, as it provides the best opportunity to sustain essential sovereign shipbuilding capacity and capability for future naval work, safeguarding both current and future jobs in the UK.”

Northern Ireland Secretary of State Hilary Benn has also welcomed the deal. “Harland and Wolff is an iconic, internationally renowned company with a long and proud history,” he said. “I am delighted that, with this deal, it will now have a bright future ahead.”

GMB Union said the announcement was “a hugely positive step for retaining UK sovereign manufacturing.” Matt Roberts, GMB National Officer, added: “But despite all four yards remaining open, GMB remains cautious. Without a steady drum beat of work these yards will continue to struggle. GMB will continue the fight to ensure that does not happen.”