REG - Harland & Wolff - MoU - New Aluminium Vessel Build

Harland & Wolff groupAnnouncement

08/11/2023 09:30

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RNS Number : 7863S  Harland & Wolff Group Holdings PLC  08 November 2023

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
(http://www.harland-wolff.com/)   or contact:

 

 Harland & Wolff Group Holdings plc                                        +44 (0)20 3900 2122

 John Wood, Chief Executive Officer                                        investor@harland-wolff.com (mailto:investor@harland-wolff.com)

 Arun Raman, Chief Finance Officer                                         media@harland-wolff.com (mailto:media@harland-wolff.com)

 Cavendish Securities plc (Nominated Adviser & Broker)                     +44 (0)20 7397 8900

 Stephen Keys / Callum Davidson / Dan Hodkinson (Corporate Finance)

 Michael Johnson (Sales)

 Liberum Capital Limited (Joint Broker)                                    +44 (0)20 3100 2000

 Nicholas How / Edward Mansfield

 Radnor Capital Partners (Investor Relations)                              +44 (0) 20 3897 1838

 Neville Harris / Joshua Cryer

 

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.

 

 

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