Navantia to acquire Harland & Wolff’s shipyards

Photo: Navantia

Spanish state-owned shipbuilder Navantia has reached a deal that will see it acquire all four of the shipyards operated by U.K. shipbuilder Harland & Wolff, whose holding company went into administration September 27.

The deal also promises to secure the future of the U.K.’s Fleet Solid Support Ship (FSS) program in which Navantia, Harland & Wolff and BMT are partnered to build three support vessels for the Royal Fleet Auxiliary.

Under the agreement, which remains subject to completion and regulatory approvals, Navantia U.K. will manage all four facilities.

The U.K. Department of Trade & Industry Jonathan Reynolds said that the deal will secure the future of Harland & Wolff’s shipyards in Northern Ireland (Belfast), Scotland (Arnish and Methil) and Devon (Appledore), and protect workers’ existing terms and conditions.

Noting that the deal would ensure the delivery of the FSS ships, the department said, “the FSS ships are important for safeguarding the U.K.’s aircraft carriers’ military capability by delivering vital supplies to the Carrier Strike Group, and this deal will ensure the U.K.’s shipbuilding capability by retaining jobs and manufacturing in the U.K.

“The Government has worked closely with Navantia U.K. and agreed an amendment to the existing FSS Program contract on commercial terms, which makes the minimum changes necessary to ensure Navantia can still deliver on the contract and build all three Navy ships,” noted the department

Not everyone is going to come out of this smiling. The Financial Times quotes Harland & Wolff’s interim executive chair as saying that the sale to Navantia will “regrettably” mean losses for creditors and suppliers when the deal is finalized in January,