Navantia UK’s new chief executive, Donato Martinez, spoke to me and other journalists about strategy following the firm’s acquisition of Harland & Wolff’s Belfast yard and the award of the Fleet Solid Support (FSS) contract.
Martinez said Navantia UK was created off the back of the FSS programme, but is now building itself into a broader industrial player with four business units: Belfast, Appledore, Methil and Arnish.
“Belfast is going to be our large and main shipyard in Navantia UK, building the largest ships for the company with a clear focus on defence needs,” he explained, adding that Appledore would act as a hub for medium-sized ships and exports, while Methil and Arnish would focus primarily on renewables but could support defence programmes.
Asked to set out the next milestones for FSS and whether there had been serious issues taking over Belfast, Martinez acknowledged the scale of the challenge. “Because of the financial situation [prior to takeover], a lot of preparation to get ready was not progressing as expected. A huge personal effort was required to novate contracts, work with suppliers, put training plans in place and deploy new IT systems. The good thing is Navantia brings knowledge on how to get those things done.”
He confirmed that design work had continued smoothly and said the programme is now on firmer ground: “We are sticking to the key milestones in the short term. The next milestone review is in October, and everything is going to plan. Materials are being procured, steel is being delivered, and we are collaborating with UK suppliers. The aim is to be fully ready when big production work starts next year.”
Looking further ahead, he said continuity of work would be vital for Belfast: “We need to provide volume to any company. The next thing for Belfast is obviously the multi-role support ship capability. We are planning to concurrently work on FSS and that programme so that we can provide a stable road in the years ahead.”
Martinez also highlighted Navantia’s heavy focus on innovation and investment. “We invest more than 10% in research and development every year. The 5.0 concept is about how to get ships faster to the customer, with process re-engineering, new machines and new robots in shipyards. There is a first round of £115 million investment, and there will be a second and third to put all that model in place in the UK.”
On collaboration with other yards, he said Navantia UK was ready to support BAE Systems or Babcock if they required extra capacity on Type 26 or other programmes: “If they need help, we need help. That is our obligation to support them, and vice versa.” He also backed proposals for greater cooperation across the shipbuilding sector: “I think it’s the most sensible approach. The expectation is so high that we need to collaborate. Sometimes you need to recognise that smaller shipyards are better at certain things, so you must engage them.”
Martinez was clear that Navantia UK intends to build up its own design capability. “The only way of making sure that you are really efficient is to control the design. You can reduce the number of materials, reduce the number of hours, and be liable for penalties if you don’t deliver. It doesn’t mean we’ll do everything alone—we believe in partnership—but we must develop our own design capability here in the UK.”
He concluded by linking Navantia UK’s plans to wider UK defence policy: “Sometimes timing just happens to be good. The Strategic Defence Review and the Defence Industrial Strategy align very well with what we set out from January. Our focus is on relentless commitment to delivery, investment in people and apprenticeships, and innovation to ensure the Royal Navy gets capabilities faster and more efficiently.”
A whole lot of talk going into Shipbuilding around the UK, either its a corporate pipe-dream or BAE, H&W and Babcock have had some very strong signs from HMG that the RN is going to be undergoing a pretty substancial expansion over the next 10-20 years.
Also responding to commercial signals from customers
T26 build – Norway and maybe others
T26 design and major components exported – Canada and Australia
T31 build to export – Denmark and maybe Sweden and maybe others
T31 design and major components exported – Poland and Indonesia
AUSUK – Australia
As I said on NL there must have been some letters of comfort flying around as well as some sharing of advance pipeline with the yards. Although, given how yellow politicians are about defence I wouldn’t take anything that wasn’t monetisable.
The only good thing about this current government is that they do see regenerating shipbuilding as being worthwhile as an end in itself. Spending money on RN is supported by all the major parties so it doesn’t really get much flak. Shipbuilding unions are happy as they are getting lots more members with stable long term job – if they can keep the Trots out of control…..
If there are to be two missile ships for every T26 that’s another 16 missile ships. These will have to be big to survive the North Atlantic, fast to avoid constaining their parent frigate, have a good range to not overburden the oilers. Carrying many millions of quid’s worth in missiles, they won’t be attritable, so you can expect a significant amount of milspec and some complex damage/fire limitation hardware. I think knocking out the first one in two years, as the 1SL suggested, is unlikely, but they could be a spirally developed from a cheap and cheerful version.
I can’t see it happening myself, but 1SL already has something in mind if he put such a tight timescale on it.