Navantia Completes Acquisition of Four Harland & Wolff Shipyards in the UK
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Spanish shipbuilder Navantia Group’s UK subsidiary completed the acquisition of the four shipyards and the offshore operations of the UK’s financially troubled Harland & Wolff Group. It was a strategic deal supported by the UK government and ensured the project to build three support ships for the Royal Fleet Auxiliary.
The UK government of Prime Minister Keir Starmer was heavily involved reporting it worked closely with Navantia UK and agreed on an amendment to the existing Fleet Solid Ship Program contract on commercial terms, which made the minimum changes necessary to ensure Navantia could still deliver on the contract and build all three navy ships. The support for the sale came after the government last summer decided not to provide loan guarantees for Harland & Wolff to refinance its operations.
In announcing that all the necessary regulatory approvals had been received, Navantia also thanked the UK government for its support during the negotiations. The company is committed to protecting more than 1,000 jobs while making investments in the operations.
“The completion of this acquisition marks a significant milestone for Navantia UK and demonstrates our long-term commitment to UK industry,” said Ricardo Domínguez, Chairman of Navantia. “By combining Harland & Wolff’s proud heritage and facilities with Navantia’s global expertise in defense, maritime, and renewable energy, we are creating an exceptional platform for growth.”
Navatia acquired the facilities of Harland & Wolff’s historic shipyard as well as the facilities of Appledore in Devon, and the smaller fabrication yards Methil and Arnish both in Scotland. The yard in Belfast and Appledore will both participate in the Royal Fleet shipbuilding program building components and outfitting the three vessels which will also be built by Navantia at the Puerto Real facility in Cadiz, Spain.
Harland & Wolff’s parent company went into administration last fall when the UK government refused to support the refinancing. Initially, the shipyards continued to operate but in mid-January, the company said it determined it was no longer possible to run the yards and they would also proceed into administration. It was reported as a step in the sale process making it possible for Navantia to buy the assets without taking on all the debts of Harland & Wolff.
The deal and the asset sale raised questions in the UK Parliament and concerns that suppliers would not be paid. GMB Union which represents workers at the yards today however released a message on social media saying closing the deal meant workers could relax with job security. However, the union noted that without more work the wards would continue to struggle.
The prior management group had acquired the storied Belfast yard from administration in 2019 and mapped a strategy to expand the business focusing on shipbuilding, repair, and opportunities in structures for the offshore energy market. They acquired the long-idle Appledore yard and the yards in Scotland and had begun to win assignments including its first new builds in 20 years. However, it also required extensive investments to modernize the facilities.
Navantia looks to use its extensive depth in the maritime industry both with naval construction and repairs to expand Harland & Wolff’s operations.
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