Navantia UK has unveiled plans to invest in Harland & Wolff’s four UK shipyards to bolster Britain’s defence, maritime, and clean energy sectors while safeguarding jobs, according to a press release issued on 29 January 2025.
The Spanish-owned firm, which recently completed its acquisition of Harland & Wolff, confirmed it will resume and expand a paused investment plan tied to the Royal Navy’s Fleet Solid Support (FSS) programme.
Upgrades at the Belfast, Appledore, Methil, and Arnish sites will fund advanced facilities, technology, and workforce training to modernise UK shipbuilding and industrial capabilities.
Ricardo Domínguez, Navantia’s Chairman, told workers in Belfast: “We are building a formidable team. This integration is not just about combining companies but creating a platform for sovereign defence and clean energy.” The FSS programme will see Navantia UK build three Royal Fleet Auxiliary ships, with final integration and delivery in Belfast.
Northern Ireland Economy Minister Conor Murphy welcomed the move, stating: “This secures Harland & Wolff’s long-term future and creates opportunities in engineering and innovation.” Royal Navy Brigadier Andrew Muddiman added: “This investment rewards the patience of the workforce and reaffirms confidence in UK shipbuilding.”
Belfast Lord Mayor Mickey Murray called the deal a “momentous occasion” for the city’s industrial heritage, noting the iconic shipyard’s role in sustaining skilled jobs. Navantia emphasised its commitment to transferring technology and expertise to transform Harland & Wolff into a competitive operator for defence and renewable energy projects.
The investment aligns with the UK’s National Shipbuilding Strategy, aiming to strengthen supply chains and workforce skills. Navantia UK, a subsidiary of Spanish state-owned Navantia, specialises in naval construction and offshore wind projects.
I’m surprised BAE let another competitor into the marketplace.
I don’t know what UK monopoly laws are like, but maybe they didn’t have a chance to stop it? If the government just went straight to Navantia and didn’t let BAe make an offer?
BAE has had plenty of opportunity to buy one or more of these sites in and not been interested.
I suspect Belfast is too much of a distraction away from it’s core business. There no building facility there as far as I know and they haven’t built a ship in decades. There was a brief interest in Appledore before Babcock took over for the carriers briefly.
BAe is very centralised I’m Glasgow for any build.
The business went into Administration so the laws governing this process are strict with outside parties offered to express their interest, which is followed by a confidential engagement procedure.
21 parties I believe actually expressed an interest and there were certainly no issues regarding the creation of a monopoly if BAe took on the business but perhaps they wished to concentrate on complex warship building. They already have invested heavily, which is ongoing on the Clyde and Barrow.
The Government’s preference was for Babcock to take on the business but the complications this may have presented with regards work share already agreed with Navantia for the FSSS probably made this difficult.
Nevertheless there is potentially a cuckoo in the shipbuilding nest, which I think could create some difficulties in the future but in the short term does provide a saviour and investment for H&W.
Fair enough!
It’s an interesting development because unlike Babcock (just building their very 1st build) Navantia are a very experienced Naval ship builder with all the bells a whistles required to go head to head with BAe in any future bids (except Nuclear).
They have designed and built LPH, LPD, AAW / ASW Destroyers & Frigates and AIP Submarines and have just nabbed the largest Building Dock and Drydock in the U.K.
Whilst part of me naturally would have proffered a U.K. buyer to step in no one took it on, BAe are up to their U.K. necks with Frigates and Submarines and focussed on the modernisation and expansion at all their sites, so probably too stretched to take in an other. Babcock are similar at Rosyth and Devonport but also losing money on the T31.
IMHO the devil is in the detail and the main priority is the transfer of skills and work share to the UK, I’d bet the stern / machinery blocks of FSS are built in Spain and barged to Belfast for assembly. That’s probably a good thing this time whilst the Yard and Workforce get up to speed, but any future work has to be U.K. build.
Anyone who looks at what they are buying and at the NSBS will realise that there is a pipeline of future work that can only be built at Belfast due to the sizes involved. They are of course the MRSS and the next QE maintenance / refit / support contract, the later is a shoe in at Rosyth at the best of times and Babcock will be busy with de commissioning the old Nuclear boats.
It’s nuts that the Spanish Government may actually end up receiving a profit out of U.K. Naval building, but it’s what it is 🤦🏼♂️.
I hope the offshore wind projects can generate a substantial amount of work for these yards as there is little chance for any more naval contracts after the FSSS are delivered.
What about MRSS? That’s still completely up in the air as far as I am aware. Navantia have a lot of experience designing and building very capable amphib ships
May 2024 Grant Shapps committed previous govt to the first 3 of ‘up to 6’ MRSS, linking the decision to commitment to 2.5% lf GDP defence spending. I would guess that now with new govt and SDR pending what we have a plan to replace the Bays and Argus with ‘ up to 3’ MRSS 🙂
Cynical…and unfortunately probably also correct! I despair
Agree, MRSS will be 3 and there will be no T32 so between H&W and Rosyth there will only be three ships to build. That will keep one yard modernity busy for 6 years. Our surface fleet is too small to keep one yard going. It’s nonsense to try and keep three.
T83 FADS is also a real thing in MoD minds and isn’t that far away.
T26 for Norway is a maybe and would extend the T26 pipeline considerable.
There will need to be RFA for the Proteus type[ish] role.
RiverB1’s need replacement – I’d hope with something more flighty which is where T32 or T31B2 comes into play. In an odd way if BAE get T83 they will be up their necks in shipbuilding and so it would suit better to keep Babcock working on the budget end of the fleet?
Navantia must be on a promise of something and/ or export potential.
Yes but T83 and any extra T26 are all built on the Clyde, so just three ships between Rosyth and H&W to last 15 years until anything else to build.
What does Navantia get out of this? It has secured an overpriced FSS contract but what then? Why would they build anything in more expensive UK yards unless the contract demands it?
It is rather disturbing that a state owned( subsided?) foreign company can do what HMG seems incapable of.
The UK government wants more ships but there is no where/ no one to build them. The only two companies that can have naval contracts for years. H&W had the chance and blew it! It’s got nothing to do with whether the government is capable or not there is literally nobody left in the UK who can build the ffs contracts. Simple as that!
Perhaps they plan to compete with BAE for the T-83 contract ? As has been mention above MRSS. They might they want to compete for the point class replacement. In the NSS doc it lists wave class replacementsi, if UK build is specified then they would be in prime position for these two programmes.
T83 won’t be a competitive bid.
Spin doctors seem to be hard at work I see. So really nothing has changed on investment in facilities at H&W. The reason why H&W were in debt was due to investing for the FSS contract and wanted a loan guarantee to secure more private funds to invest, this was no secret as it was requested 4 years ago from the conservative government. The only thing that has changed is the price of the FSS which is going up and the government won’t reveal by how much, so rather than private capital as it was under H&W, its more tax payers money going to Navantia to fund the investment. Keep in mind post FSS if H&W had been backed by the government we would have had another UK shipbuilder and UK owned dry dock, now we have foreign competitor with firm foot hold in the UK market.
The issue for me is risk management. Navantia is a credible builder of proven navy warships; they have skills, track record and can provide references. Their quote for price and delivery should be reliable. Infrastrata would have been a high risk option.