1,000 UK jobs will be saved by a commercial deal, expected to be
completed shortly, which Navantia UK has agreed with Harland
& Wolff to purchase all four of its shipyards, securing the
future of shipbuilding in Belfast and Scotland.
The deal will secure the future of Harland & Wolff's
shipyards in Northern Ireland (Belfast), Scotland (Arnish and
Methil) and Devon (Appledore), and 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
Navy ships.
Business & Trade Secretary 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 said:
“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.
Notes to editors:
- This agreement is subject to regulatory approvals.
