The biggest British defence companies are in line to bid for a £1.6bn Royal Navy Supply Ship contract, amid fears that the company tasked with fulfilling it may collapse.
A Government source confirmed on Thursday that rival companies will be asked to manufacture three Fleet Solid Support warships if Harland & Wolff – the Belfast-based yard which built the Titanic – is unable to deliver.
The project is believed to be divided among the members of the “Team UK” group, which includes BAE Systems and Babcock. A&P Group, Cammell, and A&P Group also bid unsuccessfully for the contract.
Team UK sources confirmed that they were “ready” to assist if needed, and could take on any work.
The Government source said that discussions were still aimed at helping secure Harland & Wolff’s future. They added that contingency planning would only be considered in a “worst case scenario”.
They said: “We do not depend on the fate one shipbuilder.”
Whitehall officials are said to have been looking at all options as they continue urgent discussions about a £200m package of support for the Northern Ireland-based company.
Harland & Wolff found itself in a state of uncertainty this week when it was revealed that a government loan guarantee was under question due to legal concerns.
Auditors warned that the company would struggle to survive if it didn’t receive the support.
Jeremy Hunt, Chancellor, will make a decision in a few days on whether or not to approve the Guarantee.
According to reports, Grant Shapps (the Defence Secretary) lobbied the Chancellor for the deal.
Harland & Wolff insisted that the ongoing talks were “business as usual” despite the turmoil.
A spokesman said on Thursday: “Only last week, we received four of our brand-new burning machines. This is an investment worth millions.”
We have many projects in production across our entire facility.
After a long and difficult bidding process, the £1.6bn contract for building three FSS vessels for the Royal Fleet Auxiliary (a civilian branch within the Royal Navy) was awarded in 2022 to Harland & Wolff, a British shipbuilder, and Navantia, a Spanish shipbuilder.
Some MPs have criticised this decision because certain sections of ships – called blocks – will be built at Navantia’s shipyard in Cadiz.
Ministers insist that the majority of the warships will be built in Britain. These ships will play a vital role in supplying Royal Navy carriers with munitions, and will also supply other vessels.
Navantia Cadiz is currently planning to produce seven rear-end blocks.
The blocks will be sent to Belfast where Harland & Wolff can make the 14 remaining front and middle block before assembling the ship.
A source from Navantia refused to comment Thursday on the future of Harland & Wolff, but stated: “The FSS program is progressing with contracts being awarded, the engineering advancing, and the transfer knowledge, modernisation, and preparation of Harland & Wolff shipsyards underway.”
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