(Alliance News) - Harland & Wolff Group Holdings PLC on Thursday said it has entered into talks to finalise terms for the UK Ministry of Defence's Fleet Solid Support contract.
Harland's consortium Team Resolute, comprising Harland & Wolff, Navantia UK and BMT, was selected as the preferred bidder to build three Royal Navy support ships on Wednesday.
The consortium announced on Thursday it has invested GBP77 million into Harland to complete the GBP1.60 billion contract. Harland said the investment will be used to develop its infrastructure in order to carry out works under the contract, as well as making its shipyards "well-placed" for future export and domestic build opportunities.
Planning applications for Harland's shipyard upgrades in Belfast will be issued in the next few months, Harland said, with full scale production due to commence in 2025. Prior to this, pre-fabrication, engineering and design work streams will be undertaken by Team Resolute during the next 18-24 months.
Harland said all three ships are expected to be operational sequentially, with the last vessel to be delivered by 2032.
The contract is due to be awarded by Defence Equipment & Support next year to Navantia as prime contractor, subject to successful completion of the Preferred Bidder process and approvals. Harland and BMT will be subcontractors respectively within the consortium.
Harland Chief Executive John Wood said: "The FFS programme will revitalise shipbuilding across our four UK sites and will deliver significant levelling up - from Northern Ireland to North Devon."
Wood said the fleet contract, alongside existing projects, provides "significant" revenue visibility over the short to medium-term.
Harland shares ended up 34% at 24.00 pence on Thursday in London.
By Jaskeet Briah; jaskeetbriah@alliancenews.com
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Harland & Wolff (HARL)