Navantia Commits to Investments After Closing Harland & Wolff Acquisition
Navantia UK announced plans to invest in Harland & Wolff’s facilities to strengthen Britain’s defense, maritime, and clean energy industrial capabilities after the Spanish parent company completed the acquisition of the four UK shipyards including the historic Belfast, Northern Ireland facility. Government and industry officials as well as the union representing the workers at the Appledore facility welcomed the acquisition calling it a new chapter for the company and UK shipbuilding.
“Today marks the beginning of our shared journey. We are not just combining two companies; we are building a formidable team,” said Navantia’s Chairman, Ricardo Domínguez, as management conducted a visit to the Belfast shipyard and will be touring Appledore, Methil, and Arnish in the coming days.
Riverstone Capital which had financed the Harland & Wolff Group reported the sale of the four yards was finalized for a cash consideration of £69.9 million ($86.8 million). In addition to the purchase price, Navantia UK agreed to waive £23 million ($28.6 million) of debt that had been provided between October 2024 and the closing to maintain the operations of the four yards. The bankruptcy administrators are expected to make an initial distribution of approximately £44 million ($55 million) to Riverstone Credit Partners and affiliated funds, with future distributions estimated to total around £26 million ($32 million) over the next few months. There was no word if monies would be available to the individual creditors of the Harland & Wolff Group and its shipyards.
Separately, Rothschild & Co is soliciting interest for the acquisition of Harland & Wolff's Islandmagee Gas Storage project, which is expected to significantly increase the UK's gas storage capacity once operational. The project was part of InfraStrata, which acquired Harland & Wolff in 2019 and later transformed into the Harland & Wolff Group.
Speaking to the workforce at the Belfast shipyard, Navantia’s Domínguez announced that the new owners would resume and expand the investment and recapitalization plan for Harland & Wolff, which is central to the Fleet Solid Support program for the Royal Fleet Auxiliary but had been paused in recent months. Investments into the shipyard facilities had been underway before the bankruptcy to support the FSS program, which calls for Navantia in Spain to build the hulls with integration and delivery taking place at Harland & Wolff’s Belfast shipyard.
The investment across the four sites will fund cutting-edge facilities, technology, and training, underpinned by a comprehensive business plan to integrate these facilities into the UK’s industrial and defense ecosystem, reported Navantia. The Financial Times reports the Spanish company has committed up to £100 million ($125 million) in investments to support the building program and to revitalize the four yards. Navantia says it looks to align the yards with the UK’s strategic priorities for national security and energy transition.
As part of the deal with the government for the rescue of the four yards, Navantia has reportedly committed to maintaining 1,000 jobs at the four yards. In addition, the company said the FSS program would provide 800 related jobs at suppliers across the UK.
The rescue marks the second time in less than a decade that the Belfast yard was been saved during administration. Appledore which also dates back to the 1850s ceased operations in 2019. It was acquired in 2020 by InfraStrata as part of its plans to build out the capabilities of Harland & Wolff.