Navantia Completes Takeover of Harland and Wolff Shipyards in UK

In a significant move for the UK shipbuilding industry, Navantia, Spain’s state-owned shipbuilder, has successfully completed the acquisition of Harland and Wolff. This acquisition encompasses Harland and Wolff’s four key shipyards in Belfast, Appledore, Methil, and Arnish, employing approximately 1,000 individuals.

The acquisition process was long-drawn, with Navantia officially agreeing to purchase the business in December. However, regulatory clearances were required before the transaction could be finalised. This deal signals a new chapter for these historic shipyards, offering stability and potential for future growth.

Ricardo Domínguez, Chairman of Navantia, expressed optimism about the future, stating, “The completion of this acquisition marks a significant milestone for Navantia UK and demonstrates our long-term commitment to UK industry.”

All existing Harland and Wolff employees have transitioned to Navantia UK under the same terms and conditions, ensuring continuity and job security.

The GMB trade union has expressed relief, recognizing the stability that comes with the deal. Matt Roberts, GMB National Officer, said, “Workers across all four yards will breathe a sigh of relief at finally being under stable ownership.” However, he emphasized, “Without a steady flow of orders, these yards will continue to struggle.”

One of the most crucial contracts that Navantia will inherit is for the construction of three support ships for the Royal Navy, known as the Fleet Solid Support (FSS) programme.

Navantia has assured that this important project will continue. The construction will take place at both the Belfast and Appledore shipyards, alongside Navantia’s facilities in Spain.

In addition to the FSS programme, Navantia UK has ambitious plans for future development. They intend to expand their operations into defense, maritime, and green energy sectors, aiming to make a significant impact in these areas.

It is important to note that part of the deal included moving the shipyards into administration. While this step ensures Navantia is not burdened with Harland and Wolff’s legacy debts, it also poses challenges. Some suppliers might experience financial hardships due to the administrative restructuring.

Gavin Robinson, the Democratic Unionist Party leader and East Belfast MP, expressed concerns about the administration move, which he believes will leave many businesses in the Harland and Wolff supply chain in a precarious position.

He emphasized, “This will be a hammer-blow to those companies with significant unpaid sums.” Robinson called on all parties, including the new owners and relevant authorities, to work together to mitigate the impact on the local supply chain.

The acquisition of Harland and Wolff by Navantia is a monumental event for the UK shipbuilding sector. It brings with it the promise of stability, investment, and expansion into new areas. However, the transition is not without its challenges, particularly for the supply chain.

As Navantia moves forward with its plans, it will be crucial for them to address the concerns of the supply chain, ensuring a smoother transition and creating a sustainable future for all stakeholders involved.