Business

Harland & Wolff shipyard in line for £120m Falklands contract

A £61m contact from Canadian client Cenovus Energy will see 1,000 people at Harland & Wolff 's Belfast shipyard work on a major vessel upgrade next year
Harland & Wolff has been named as preferred bidder on a £120m port project in the Falkland Islands

Belfast manufacturing excellence is set to be pivotal to a multi-million pound project to rebuild the port in the Falkland Islands over the next two years.

Harland & Wolff Group Holdings has been chosen by the Falkland Islands Government as preferred bidder for the Falkland Islands Port Replacement Project (FIPASS).

And subject to agreeing final contract pricing and concluding commercial negotiations, directors at H&W believe the project could generate total revenues of up to £120 million, with works expected to commence later this year.

The FIPASS project involves the build, transport and installation of four floating pontoons of approximately 90 metres each in the Falkland Islands, which is more than 8,000 miles from Belfast shipyard.

John Wood, chief executive of Harland & Wolff Group Holdings
John Wood, chief executive of Harland & Wolff Group Holdings John Wood, chief executive of Harland & Wolff Group Holdings

Conditional on the award of the final contract, H&W intends to spread the work across its multiple facilities - including Belfast - in order to provide optionality and de-risk the fabrication of these pontoons.

John Wood, chief executive of the Harland & Wolff Group, said: “Following a competitive bid process, I’m delighted that the Falkland Islands Government has selected us as preferred bidder for this project.

“Our company enjoys an excellent relationship and a rich heritage with the Falkland Islands, given that Harland & Wolff built the six linked barges which make up the existing port facility 45 years ago.

“I look forward to working closely with the Falkland Islands Government and bringing this contract to fruition.”

Shares in Harland & Wolff were 13% higher on early trading following the company’s statement to the Stock Market announcing the possible contract.