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British suppliers to Harland and Wolff are facing potential losses amounting to millions of pounds as the historic shipbuilder transitions to Spanish ownership under Navantia. The situation has triggered significant concerns about the future of UK supply chains and the possibility of their replacement by European contractors.
The 164-year-old shipbuilding company, renowned for constructing the Titanic, entered administration in September 2023, struggling with substantial losses and overwhelming debt interest payments. While a December agreement with state-owned Navantia promised to safeguard 1,000 jobs across four shipyards in Northern Ireland, England, and Scotland, the future remains uncertain for numerous suppliers.
One British-based supplier, speaking anonymously, revealed outstanding payments exceeding £10 million, describing the situation as “very stressful” for their SME operations. The initial expectation was that Navantia would assume Harland and Wolff’s existing debts, but this hope has since diminished, with speculation growing that the Spanish firm will favour its established European supply network.
The defence select committee at Westminster has demanded answers from Defence Secretary John Healey regarding government support for affected supply chain businesses. Local suppliers report widespread anger and frustration, with one Belfast-based service provider claiming combined outstanding payments of £22 million for their company and clients.
Navantia representatives have attempted to assuage concerns, expressing commitment to developing Harland and Wolff’s capabilities and supporting local industry. The Spanish company aims to rebuild a robust industrial ecosystem, though specific details about supplier payments remain unclear.
The UK government maintains its position of providing no direct financial support to Navantia, with Business Secretary Jonathan Reynolds describing only a “relatively minor” increase to the existing £1.6 billion Royal Navy support vessel contract. As the acquisition concludes, the fate of numerous British suppliers hangs in the balance, with many already reporting job losses throughout the supply chain network.
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