RE: Sunday Times article17 Jul 2023 14:25
Here is the relevant information Stain. I am surprised that you didnt already know it and that you hadnt done any basic research.
the Company has now formally executed the Subcontract with Navantia UK Limited (the "Subcontract").
Under the terms of the Subcontract, the Company will be responsible for delivering works which are expected to generate revenues of between £700 million and £800 million to the Company by the time the final vessel is delivered. This is a significant win for Harland & Wolff and will propel the Company to the next stage of its development.
The Subcontract is for a duration of seven years commencing in 2023 and ending in 2031. As part of this Programme, the Company will be responsible for the fabrication of various blocks including some mega blocks (i.e., a block incorporating several standard sized blocks) as well as the procurement of a number of items of equipment to be installed on each vessel in Belfast. Given Appledore's experience in the fabrication of the bow sections for the Queen Elizabeth Class aircraft carriers - HMS Queen Elizabeth and the Prince of Wales, all three bow sections for this Programme will be fabricated in Appledore prior to being transported to Belfast. The three vessels will have all the blocks assembled, consolidated, fully integrated and commissioned before proceeding to sea trials from the Belfast facility, marking a return to shipbuilding in Belfast after over twenty years.
Full scale fabrication is due to commence in 2025 with the vessels due to be delivered to meet the MOD's objective to bring three ships into service by 2032. However, the Company expects to generate approximately £25 million in revenues from pre-fabrication works in 2023, and a similar sum in 2024. The Programme's gross margins are expected to maintain the Group's previously advised overall blended gross margins.
The Belfast and Appledore facilities will benefit from a £77 million capital investment programme ("Recapitalisation Plan") during the next 24 months., In Belfast, an extension to the fabrication halls will be undertaken to facilitate a highly dynamic material and sub-structure production flow along with a highly efficient manufacturing and production process. Investments will be made in technologically advanced robotic and autonomous equipment that includes material movement, marking, plate cutting, panel lines and robotic welding. In addition, new larger paint buildings will be constructed to facilitate larger and more efficient block painting. The investments in this site will ensure that the Company has one of the most technologically advanced marine fabrication facilities in the United Kingdom with the latest state-of-the-art machinery and production flows. Appledore will benefit from upgrades to the shipyard roof along with investments in additional automated machinery that includes the relocation of the existing micro panel line from Belfast.
This Subcontract will be a significant and