Belfast shipyard and offshore construction firm Harland & Wolff Group Holdings PLC (AIM:HARL) – famous for building the Titanic and other Olympic-class ocean liners in the early 20th century – doubled its market value on Wednesday following a landmark contract win.
Part of Team Resolute alongside BMT and Navantia UK, Harland & Wolff was selected as the preferred bidder for the Ministry of Defence’s £1.6bn contract to manufacture three vessels providing munitions, stores and provisions to the Royal Navy’s aircraft carriers, destroyers and frigates.
Harland & Wolff’s Belfast shipyard will construct all three 216-metre-long vessels, which upon completion, will be the second longest UK military vessels behind the two Queen Elizabeth-class aircraft carriers.
As part of the proposal, Team Resolute pledged a £75mln investment in shipyard infrastructure to support the British shipbuilding sector.
Harland & Wolff has secured MoD contracts in the past, but not on a scale of this magnitude.
Place into administration in 2019, the shipyard's iconic yellow cranes are known by the locals as Samson & Goliath, a symbol of Belfast’s once-mighty shipbuilding industry.
Samson & Goliath: A key feature of Belfast’s skyline – Photo: Shutterstock
Despite working its way out of administration by the end of 2019, the shipyard has failed to turn a profit since.
But this latest contract win “will be a significant boost to the UK shipbuilding industry… creating around 2,000 UK jobs, and showcasing cutting-edge British design,” said defence secretary Ben Wallace.
However, some build work will also take place at Navantia’s shipyard in Cadiz, Spain.
On behalf of Team Resolute, Harland & Wolff chief executive John Wood said: “Team Resolute is proud to have been selected as preferred bidder to provide the Royal Fleet Auxiliary with three state-of-the-art, adaptable ships which will fulfil the Royal Navy’s needs while strengthening UK sovereign design and shipbuilding capability, as well as generating around £1.4 billion in national social and economic value”.
Production is due to start in 2025 and all three support ships are expected to be operational by 2032.
Samson & Goliath have not built a ship since 2003, but it seems like they might not be out of action just yet.