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Legal Guidance Sought from UK Government on EU State Aid Rules as Rescue Deal for Harland & Wolff Continues

15th November 2024
Navantia is in talks to buy the shipyard of Harland & Wolff, Belfast. The Spanish shipbuilder is reportedly seeking more money for its contract from the UK’s Ministry of Defence to build three naval replenishment vessels.
Navantia is in talks to buy the shipyard of Harland & Wolff, Belfast. The Spanish shipbuilder is reportedly seeking more money for its contract from the UK’s Ministry of Defence to build three naval replenishment vessels. Credit: Harland & Wolff plc-facebook

The Labour Government in the UK is reportedly examining whether a deal to sell the shipyards of Harland & Wolff to Spain’s state-owned Navantia will comply with the EU’s state aid rules.

Currently the government is negotiating a contract for the sale of four shipyards and has sought legal advice on the matter, according to Sky News. Apart from the largest yard in east Belfast, the others across the Irish Sea involve two located in Scotland and one in England.

It’s understood the Navantia three-shipyard group is seeking more money for the £1.6 billion Ministry of Defence contract it won to build three fleet solid support (FSS) ships for the Royal Fleet Auxiliary (RFA). The FSS trio will replenish supplies for the requirements of the Royal Navy.

The Madrid-based Navantia-led consortium, which was awarded the military contract, included Harland & Wolff, with a significant amount of the assembly work is earmarked for its Belfast Queen's Island yard. 

The Irish News has further coverage including a potential deal also involving the Spanish government.

Published in Shipyards
Jehan Ashmore

About The Author

Jehan Ashmore

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Jehan Ashmore is a marine correspondent, researcher and photographer, specialising in Irish ports, shipping and the ferry sector serving the UK and directly to mainland Europe. Jehan also occasionally writes a column, 'Maritime' Dalkey for the (Dalkey Community Council Newsletter) in addition to contributing to UK marine periodicals. 

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Shipyards

Afloat will be focusing on news and developments of shipyards with newbuilds taking shape on either slipways and building halls.

The common practice of shipbuilding using modular construction, requires several yards make specific block sections that are towed to a single designated yard and joined together to complete the ship before been launched or floated out.

In addition, outfitting quays is where internal work on electrical and passenger facilities is installed (or upgraded if the ship is already in service). This work may involve newbuilds towed to another specialist yard, before the newbuild is completed as a new ship or of the same class, designed from the shipyard 'in-house' or from a naval architect consultancy. Shipyards also carry out repair and maintenance, overhaul, refit, survey, and conversion, for example, the addition or removal of cabins within a superstructure. All this requires ships to enter graving /dry-docks or floating drydocks, to enable access to the entire vessel out of the water.

Asides from shipbuilding, marine engineering projects such as offshore installations take place and others have diversified in the construction of offshore renewable projects, from wind-turbines and related tower structures. When ships are decommissioned and need to be disposed of, some yards have recycling facilities to segregate materials, though other vessels are run ashore, i.e. 'beached' and broken up there on site. The scrapped metal can be sold and made into other items.