Reports hint at Harland & Wolff rescue

First reported by the London Telegraph on Sunday October 12, the newspaper said a deal in which Navantia would take full control of the struggling shipbuilder would encompass all four shipyards in England, Scotland and Northern Ireland, and that any deal would be subject to the outstanding loan Harland & Wolff still has with Wall Street creditor Riverstone Holdings.

Responding to Maritime Journal’s request for comment, Navantia said: “I cannot confirm the informations that have been published. What I can say, on background, is that Navantia and its UK subsidiary Navantia UK are supporting Harland & Wolff so that the shipyards can continue their operations while we explore options to ensure the fulfilment of the FSS programme.

“This position is based in Navantia’s firm commitment to the delivery of this contract signed with the MoD and its commitment to support the development a shipbuilding capability in the UK.”

A few weeks ago, the company went into administration for the second time in five years when the UK’s incoming Labour government refused to underwrite a £200 million restructuring loan owed by the firm.

Immediately after the announcement Wood stepped down and Russell Downs, from Riverstone, was parachuted in as interim CEO and ‘restructuring expert’.

Navantia is a state-owned company (SEPI Group), which designs and builds ships with a high technological content for the Spanish Navy and other navies.

“We integrate systems and provide life cycle support, repairs, modernization, and technology transfer (ToT) services in 20 countries. We are a highly export-oriented company,” the company says.

“Digital transformation and sustainability are our future axes: With more than 300 years of history, Navantia is today a company that develops cutting-edge technology (digital twin, 5G, Internet of Things, eco-efficient design, hydrogen technologies) and has a tractor effect on the entire value chain, innovating and creating highly qualified employment and growth.”

The company has four locations in Spain, in Ría de Ferrol, Madrid, Cartagena and Bahía de Cádiz.

At the time of writing, Maritime journal had not received a response to requests for comment from Riverstone or Harland & Wolff.