Navantia in exclusive talks to acquire Harland & Wolff securing Royal Navy contract.

According to information published by The Guardian on October 13, 2024, Spanish shipbuilder Navantia is in exclusive talks to acquire Harland & Wolff, the historic Belfast shipyard.
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Royal Navy's aircraft carrier HMS Prince of Wales in Rota, Spain. (Picture source: UK MoD)

The potential deal could see Navantia taking control of Harland & Wolff’s four shipyards, located in Belfast, Appledore (Devon), Arnish (Isle of Lewis), and Methil (Fife). A formal agreement could be reached as early as next month.

Harland & Wolff’s main holding company entered administration last month, putting the future of the shipyards in jeopardy. However, it is understood that Navantia is working to safeguard the future of a £1.6 billion contract for the construction of three Fleet Solid Support (FSS) ships for the Royal Fleet Auxiliary. This contract, essential for providing logistical support to the Royal Navy, involves building sections of the ships in both Harland & Wolff’s Appledore yard and Navantia’s Cádiz facilities, with final assembly planned in Belfast.

Navantia has already been providing financial assistance to Harland & Wolff to maintain operations while negotiations continue. This support is seen as crucial to keeping the FSS project alive.

Sources indicate that various options are being considered to ensure the contract proceeds, including a possible buyout of the company. The urgency of the sale is driven by a need to secure new contracts and stabilize the shipyards’ future.

The government, while raising concerns about potential taxpayer losses related to a £200 million loan guarantee previously under discussion, has signaled confidence in the ongoing shipbuilding program for the Royal Navy.

Fleet Solid Support

The UK’s Fleet Solid Support (FSS) program aims to provide the Royal Fleet Auxiliary with three new vessels designed to supply the Royal Navy’s carrier strike groups and other task forces with essential resources, including ammunition, food, and spare parts. These ships are critical for sustaining long-range naval operations, particularly in supporting the Queen Elizabeth-class aircraft carriers.

The FSS ships will be equipped with advanced Replenishment at Sea (RAS) systems to transfer stores while underway. Their design includes three main replenishment rigs and facilities for vertical replenishment (VERTREP) using helicopters. The vessels will also have large flight decks capable of operating helicopters like the Merlin, and potentially unmanned aerial vehicles (UAVs). With a total cargo capacity of 9,000 square meters and the ability to carry up to six containers on the upper decks, the ships are optimized for rapid and flexible logistics operations.