8 Nov 2023 09:19
This announcement contains inside information.
8 November 2023
Harland & Wolff Group Holdings plc
("Harland & Wolff" or the "Company")
Memorandum of Understanding - New Aluminium Vessel Build
Harland & Wolff Group Holdings plc (AIM: HARL), the UK quoted company focused on strategic infrastructure projects and physical asset lifecycle management, is pleased to announce that it has signed a Memorandum of Understanding ("MoU") with Austal Ships Pty Ltd ("Austal") for technology transfer, skills, and shipyard capabilities required to build the next generation of aluminium vessels. Austal is an Australian global ship building company and defence prime contractor specialising in design, construction and support of defence and commercial vessels, and is a leading entity in aluminium technologies within shipbuilding.
The MoU is shortly expected be converted into a binding Teaming Agreement between the two parties that will include, inter alia:
· Use of Austal's designs for the next generation of patrol vessels
· Technology transfer from Austal to H&W including specialist manufacturing knowledge
· Equipment procurement and supply chain management for aluminium vessels
The Company has selected its Appledore facility to build aluminium vessels and the Company intends on making Appledore as the centre of excellence for aluminium related work. Both parties have identified opportunities in the UK market and will be working jointly on such opportunities as soon as the Teaming Agreement has been executed.
The Company has identified significant new contract opportunities in the aluminium vessel market and the Directors believe that this MoU will significantly enhance the Company's ability to bid on and win such contracts. A number of tenders, both from government and the private sector, are calling for the build of aluminium vessels that are lightweight and can achieve nautical speeds greater than traditional steel-built vessels. The Directors believe that the Newquay yard in the Company's Appledore facility is an ideal location for this purpose. Accordingly, the Company will be undertaking a study and a build plan to convert the Newquay yard into the Group's centre of excellence for aluminium.
A further announcement will be made in the next few weeks as soon as the Teaming Agreement has been executed.
John Wood, Group Chief Executive Officer of Harland & Wolff comments:
"I am delighted to have signed this MoU with Austal, a global leader in the aluminium vessel market. As we embark on the next phase of the Company's growth and development, we will be partnering with Austal not only for the transfer of technology to build aluminium vessels but to also join hands with them when bidding for contracts. Austal's skills and decades of experience in the aluminium build space are second to none and I look forward to working closely with them to build the next generation shipyard capability for aluminium vessels in the UK."
For further information, please visit www.harland-wolff.com or contact:
Harland & Wolff Group Holdings plc
John Wood, Chief Executive Officer
Arun Raman, Chief Finance Officer
+44 (0)20 3900 2122
Cavendish Securities plc (Nominated Adviser & Broker)
Stephen Keys / Callum Davidson / Dan Hodkinson (Corporate Finance)
Michael Johnson (Sales)
+44 (0)20 7397 8900
Liberum Capital Limited (Joint Broker)
Nicholas How / Edward Mansfield
+44 (0)20 3100 2000
Radnor Capital Partners (Investor Relations)
Neville Harris / Joshua Cryer
+44 (0) 20 3897 1838
About Harland & Wolff
Harland & Wolff is a multisite fabrication company, operating in the maritime and offshore industry through five markets: commercial, cruise and ferry, defence, energy and renewables and six services: technical services, fabrication and construction, decommissioning, repair and maintenance, in-service support and conversion.
Its Belfast yard is one of Europe's largest heavy engineering facilities, with deep water access, two of Europe's largest drydocks, ample quayside and vast fabrication halls. As a result of the acquisition of Harland & Wolff (Appledore) in August 2020, the company has been able to capitalise on opportunities at both ends of the ship-repair and shipbuilding markets where there will be significant demand.
In February 2021, the company acquired the assets of two Scottish-based yards along the east and west coasts. Now known as Harland & Wolff (Methil) and Harland & Wolff (Arnish), these facilities will focus on fabrication work within the renewables, energy and defence sectors.
In addition to Harland & Wolff, it owns the Islandmagee gas storage project, which is expected to provide 25% of the UK's natural gas storage capacity and to benefit the Northern Irish economy as a whole when completed.