Around 1,000 UK jobs will be saved by a commercial deal, expected to be completed shortly, where Navantia UK has agreed to purchase all four of Harland & Wolff’s shipyards, securing the future of shipbuilding in Belfast and Scotland.
The deal includes Harland & Wolff’s shipyards in Northern Ireland (Belfast), Scotland (Arnish and Methil) and Devon (Appledore), and will protect workers’ existing terms and conditions. It will also ensure the delivery of the Ministry of Defence’s contract with Navantia to build three Royal Navy ships which would transport munitions, spares and supplies to UK aircraft carriers — the Fleet Solid Support (FSS) Programme.
The FSS ships are important for safeguarding the UK’s aircraft carriers’ military capability by delivering vital supplies to the Carrier Strike Group, and this deal will ensure the UK’s shipbuilding capability by retaining jobs and manufacturing in the UK. The Government has worked closely with Navantia UK and agreed an amendment to the existing FSS Programme contract on commercial terms, which makes the minimum changes necessary to ensure Navantia can still deliver on the contract and build all three ships for the Royal Navy.
Business and Trade Secretary Jonathan Reynolds said: “This deal is a major vote of confidence in the UK from Navantia, which will not only secure the future of UK shipbuilding but protect 1,000 jobs across the country and bring future investment into shipbuilding right across the UK. National security is the foundation of our Plan for Change – without it we can’t deliver on our milestones to raise living standards across the UK – with good skilled productive jobs. That is why we are steadfast in supporting the future of UK shipbuilding. This deal will guarantee our sovereign shipbuilding capability to bolster our Navy and ensure the industry can continue to deliver economic growth and boost coastal communities right across the UK.”
Defence Secretary John Healey added: “This agreement keeps vital defence manufacturing in the UK and protects skilled jobs at historic shipyards across our nations. It strengthens our sovereign capability to support Royal Navy operations worldwide, while building the industrial partnerships that will drive growth. The deal represents a major investment into the UK’s industrial base from Navantia UK and will provide opportunities for future naval work at Harland & Wolff’s shipyards across the country, which could create new jobs and give a boost to the UK’s coastal communities nationwide.”
Secretary of State for Northern Ireland Hilary Benn concluded: “This investment is great news for Belfast, for the Northern Ireland economy and, above all, for Harland and Wolff’s highly skilled shipbuilding workforce. Harland and Wolff is an iconic, internationally-renowned company with a long and proud history. I am delighted that, with this deal, it will now have a bright future ahead.”
