Arnish awaits major boost

Workers at Arnish completing a recent contract for a nuclear plant. They now await further good news.

A major Ministry of Defence order for a consortium which includes the Harland & Wolff group will, if confirmed, bring significant amounts of highly skilled work to the Arnish yard in Lewis.

The Team Resolute consortium has been appointed as preferred bidder to deliver three support ships for the Royal Fleet Auxiliary. The £1.6 billion contract remains subject to Treasury and Ministerial approval.

The contract intends to create 1,200 UK shipyard jobs, hundreds of graduate and apprentice opportunities, and an expected 800 further jobs across the UK supply chain.

Under the contract, the majority of the blocks and modules for the ships would be constructed at Harland & Wolff’s facilities in Belfast and Appledore, with components to be manufactured in their other delivery centres in Methil and Arnish.

Production is due to start in 2025 and all three support ships are expected to be operational by 2032. The manufacture contract is due to be confirmed by the first quarter of 2023, subject to completion of a successful preferred bidder stage and final approvals.

Group CEO of Harland & Wolff, John Wood, was part of the winning consortium.

"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,” he said.

“Team Resolute will be making a significant investment into the UK and help to level up UK Government defence spend across the whole Union. We will create high quality UK jobs, apprenticeships and four facilities across the UK which will have shipbuilding capabilities fit for the 21st century.”

UK Defence Secretary Ben Wallace added: “This news will be a significant boost to the UK shipbuilding industry. By selecting Team Resolute, the Ministry of Defence has chosen a proposal which includes £77 million of investment into the UK shipyards, creating around 2,000 UK jobs, and showcasing cutting-edge British design.

“Building on ambitions laid out in the National Shipbuilding Strategy, this contract will bolster technology transfer and key skills from a world-renowned shipbuilder, crucial in the modernisation of British shipyards.”