Navantia Close To Harland & Wolff Buyout

The U.K. arm of Spanish firm Navantia today (Thursday) confirmed it was in negotiations over a rescue deal which would see it acquire embattled British shipbuilder Harland & Wolff (H&W).

It's understood the agreement would safeguard 1,200 jobs at H&W's four British shipyards and secure improved terms on a contract to build three new Fleet Solid Support (FSS) vessels for the Royal Navy. The start of construction work on the first FSS vessel is earmarked for 2025, and all three ships are scheduled to be operational by 2032.

The Royal Fleet Auxiliary ships' main role will be to replenish the Royal Navy's Queen Elizabeth-class aircraft carriers, and to its destroyers and frigates. The 216-metre FSS vessels will also offer joint operations logistical support, including anti-piracy missions. They will have a range of 11,000 nautical miles and a maximum speed of about 19 knots.

The Spanish group is thought to be paying around £70 million to acquire H&W's assets, which include its shipyards in Belfast, Northern Ireland; in Appledore, Devon, England; and in Arnish on the Isle of Lewis and in Methil in Fife, both in Scotland.

Navantia UK had already been working with H&W on the £1.6 billion contract to deliver the new FSS ships. The plan is for the new craft to be built in blocks in Belfast and Appledore, as well as at the Spanish company's main site in Cádiz, ahead of the vessels' final assembly in Belfast.

H&W, the famed historic firm once responsible for building the Titanic, had collapsed into administration in September this year after failing to secure enough new orders; a plea for financial support from the Treasury had been rejected by the Government.

A press statement noted: "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."

It said the agreement "remains subject to completion and regulatory approvals" and added it expected the deal to be finalised in January 2025.

• You can read more details on the Navantia UK website