The UK Government has confirmed that it remains committed to securing the future of British shipbuilding, with Maria Eagle, Minister of State for Defence Procurement and Industry, reassuring MPs about the impact of Harland & Wolff’s (H&W) financial difficulties and the ongoing Fleet Solid Support (FSS) programme.
In a letter dated 5th February 2025, addressed to Tan Dhesi MP, Eagle wrote:
“Firstly, I want to reassure you that this Government recognises the vital role that shipbuilding and its skilled workforce plays, not only in our national security, but also in the economic prosperity and growth of the UK. For example, we are committed to backing the long-term future of UK shipbuilding, ensuring we buy, make, and sell more in the UK as far as possible.”
Highlighting the scale of the UK’s shipbuilding industry, she noted that the sector supports 42,600 jobs and contributes £2.4 billion to the economy annually, while the wider maritime sector employs 113,000 people and adds £11 billion.
The sale of Harland & Wolff to Navantia UK was completed on 27th January, covering all four shipyards in Belfast, Arnish, Methil, and Appledore. Eagle confirmed:
“Navantia UK has agreed to purchase all four of H&W’s shipyards, protecting around 1,000 jobs and delivery of the FSS contract, with minimum delay.”
She also addressed concerns over H&W’s entry into administration, clarifying that while the Government was aware of the company’s financial difficulties, the sale remains a private commercial deal.
“The exact details of the transaction, including any administration and the detailed treatment of H&W’s existing suppliers, is a matter for the two parties.”
However, Eagle emphasised that the Government worked closely with Navantia UK to ensure minimal disruptions to the Fleet Solid Support programme.
Impact on Defence Projects
Eagle provided updates on two key defence projects involving H&W:
Fleet Solid Support (FSS) Ships:
“The act of H&W entering administration does not directly impact the FSS programme. The programme has, however, been impacted by H&W’s financial difficulties that have ultimately led to their administration. The Government has worked closely with Navantia UK on the programme’s future to ensure its continued delivery and agreed with Navantia UK the minimum changes to the contract necessary.”
She reassured MPs that all three FSS ships will still be assembled, integrated, and delivered in Belfast.
M55 Minehunter Project for Lithuania:
Regarding the M55 minehunter regeneration project, Eagle clarified that this was a Lithuanian Defence Materiel Agency project, and not under direct UK Government control.
“Contractual performance is therefore a matter for the Lithuanian DMA and outside of the control of this Government, however, the Committee should be reassured that the DE&S team are embedded with their Lithuanian colleagues and providing sound advice and guidance daily.”
While acknowledging that the M55 project has been suspended since September, she reiterated that UK defence officials are supporting Lithuania in resolving contract issues.
Supplier Support
Concerns over payments to H&W’s suppliers and creditors were also addressed. Eagle stated:
“It is our understanding that Navantia UK is aware of the concerns raised by suppliers to H&W and are working to engage individual suppliers at pace.”
She confirmed that the UK Government and Royal Navy do not hold any financial liabilities for H&W suppliers. However, she stressed that the Government remains focused on sustaining the UK’s shipbuilding capacity and supply chain:
“We believe that this deal provides the best opportunity to sustain our essential sovereign shipbuilding capacity and capability – and the supply chains that support these – now and over the long term.”
Eagle concluded by reaffirming the Government’s commitment to a strong domestic shipbuilding sector:
“This Government is committed to working with the shipbuilding industry in supporting jobs and sustaining and growing our shipbuilding sector across the UK. The Royal Navy and wider Government have an ambitious shipbuilding programme underway, supporting jobs and driving investment.”
With the UK’s shipbuilding industry remaining a pillar of national security and economic growth, Eagle’s letter signals continued Government backing for defence manufacturing and industrial stability in the years ahead.
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They’re supposed to lay down FSSS this year. Doubtful now
when it comes to naval matters, late is as commonly used word as cu. everything happens too slowly or not at all
Fabrication started last year in Spain….keel laying isn’t really a thing in block construction.
I’d be interested to know how far advanced H&W are with any of their blocks.
Not very I’d guess.
So I suspect they #1 will have all the difficult bits [machinery spaces and complex curves] done in Spain and a few of the simpler blocks too. H&W will do as much as they can sensibly do whilst getting up to speed.
That will change as H&W get up the experience curve.
Good Day,
My comment we should have four!
Best regards Nick
We really don’t need 4
It’s about availability though, 4 is better than 3 or 2 if our experiences of recent lack of available ships is anything to go by. No Forts, two Tides, 2 T45’s no Astutes, 3 T23’s. All recent occurrences sadly.
I can’t keep track of the T23 Fleet they come and they go. the narrative around changes every week
Yes but that’s largely nothing to do with ordering insufficient ships. It’s down to clowns who don’t know much about how industry or defence work and care even less.
Delaying the ordering of ships, having to extend existing aging vessels, insufficient investment in the infrastructure, facilities and trained workforce necessary.
Plus not paying the going rate to retain or recruit the workforce.
A classic example is the scoping of the future T83, no mention whatsoever about building a new covered maintenance / refit facility to replace the one at Devonport.
IMHO it’s one thing that I really hope gets addressed in the upcoming SDR, they have spent a fortune getting the Submarine facilities sorted but now they need to renew the surface ones (including the Dry docking of the QE’s at H&W).
Won’t the T83s be based/refit in Portsmouth?
Hi, from my understanding, the existing sheds in Devonport will be used for the Type 26 and Type 31 frigates, with only minor modifications needed. Both types should physically fit within the current structures.
Hopefully, Babcock has planned and already begun the necessary work. Unless there is a strategic plan for the future Type 83 destroyers in Portsmouth—specifically regarding their placement and requirements—we risk finding ourselves in a familiar situation: delays, rising costs, and inaction.
Let’s take a lesson from Trump—just get it done and make the UK great again!
It’s the same old same old. We will be lucky to see these ships at all. The MOD is nothing more than a talking shop than a doing or get it done department.
It is our understanding that Navantia UK is aware of the concerns raised by suppliers to H&W and are working to engage individual suppliers at pace.”
So why did Navantia want H&W to go into administration ? Answer so they did have to pay what’s owed to the suppliers. Government is really try to spin this as a good deal. They’re yet to disclose tge renegotiated price for FSS!!!
We are CTR i have supplied H+W SINCE 1999 on various projests up to 300 men at one time when our old company Techstaff were part of the G6 and since then on various other projects supportig the projects with management Supervision
Welders ,Platers,Pipefitters,mech . Fitters painters rope açcess, Electricians,innstrument guys Admi⁹n and white collar staff of all disciplines. We would like to be part of the team pushing these contracts forward to drlivery.Based on Teesside we have quality tradesmen available for any of th 4 docks all with either H+W or orther yard ship and rig building.
I would like to find ut who to contact that is please pulling suppliers together as i strongly believe we would be a great asset and support for this work and would welcome the opportunirt to speak with the relevent person to discuss opportunities
Many Thanks
GedO”Donnell
07790568223
[email protected]