26 May 2020
(“InfraStrata” or the “Company”)
Teaming Agreement with Navantia
InfraStrata plc (AIM: INFA) is pleased to announce that its fully owned subsidiary, Harland and Wolff (Belfast) Limited (‘Harland & Wolff’), has signed an exclusive Teaming Agreement (the “Agreement“) with Navantia S.A., S.M.E (“Navantia“).
Under the terms of this Agreement, both parties will come together on an exclusive basis to jointly bid for the Fleet Solid Support Programme (“FSS” or the “FSS Programme“), tender details for which are likely to be released by the UK Ministry of Defence (“UKMoD“) in the forthcoming months.
Key highlights of the Teaming Agreement:
· The exclusive partnership will operate under the name, Team Resolute.
· Beyond FSS, Team Resolute will spearhead other opportunities within the UK defence sector, including modernizations and retrofits, providing much needed economic growth within the UK shipbuilding and through-life support sectors.
· The FSS Programme will likely consist of at least two vessels based on last year’s parameters with the possibility of a third vessel.
· The FSS Programme delivery would be shared between members of Team Resolute with a key focus on British build and British design adding to the UK’s sovereign ship-building capability and creating significant economic prosperity.
· Commitment by Navantia to provide technology and know-how transfer to Harland & Wolff, including upskilling of the workforce, with Harland & Wolff’s employees receiving training and acquiring new skills in Navantia’s shipyards.
· Navantia’s experience in developing a digitally enhanced shipyard approach, Shipyard 4.0, will be shared with Harland & Wolff and the downstream UK supply chain, to help improve efficiency by up to 20%. This is an opportunity for Harland & Wolff to develop and exploit the use of digital technology to improve competitiveness, as proposed in the government’s UK National Shipbuilding Strategy.
· Provision of a reach-back service to draw on Navantia’s decades of experience in design, fabrication, system design and integration, main engines fabrication, weapons manufacture and through-life support.
· Harland & Wolff is the UK’s largest shipyard with its unique ability, across both the defence and wider maritime sectors, to dock vessels of up to 556 metres in length. Harland & Wolff’s dock, approaching double the length of that of its closest competitors, sets it apart as a distinctive nationally strategic asset.
Defence is one of Harland & Wolff’s key sectors and this Agreement will enhance the shipyard’s competitive edge, productivity and value for money, whilst continually developing other commercial business interests in order to avoid reliance on defence contracts alone.
John Wood, CEO of InfraStrata commented: “I am very pleased to have signed this Agreement with Navantia. This partnership has the capability to disrupt the UK Defence ship-building and through-life support duopoly that currently exists, as well as providing much needed competition in the defence sector to ensure optimum value for taxpayer money and guaranteed delivery.”
Abel Méndez, International Defence & Security Director of Navantia commented: “It is clear that under a new management team, Harland & Wolff is a shipyard that is forward-thinking, agile and ready to do business. We are excited about this new collaboration and the opportunities it will bring for both partners.”
Potential of Team Resolute
Our partnership with Navantia will help create a more level playing field when competing for upcoming defence contracts. Harland & Wolff is not solely reliant on defence contracts and is currently making significant progress within the oil & gas, cruise & ferry, commercial and renewable sectors.
We have always selected our partners carefully. In Navantia, we see a long-term partner not only within the defence sector, but also in the offshore wind farm sector for fixed and floating foundations, for which we are already in advanced teaming agreement discussions. These teaming agreements are in relation to a series of specific projects in UK waters that have already been identified as commercially viable and that play to the, fabrication, assembly, lifting capacity and storage space strengths that both partners carry.
Navantia already delivers a wide range of naval and support ships to governments around the world, including, four different programmes for the Royal Australian Navy, culminating in 19 ships. Local partnerships were established to develop and operationalise an effective Australian supply chain, just as Navantia have also done for the Norwegian and Turkish naval programmes. In total Navantia have delivered 40 ships, on time, over the last 5 years.
For further information, please visit www.infrastrataplc.com or contact:
John Wood, Chief Executive
c/o Newgate Communications
+44 (0)20 3757 6880
Cenkos Securities plc (Nominated Adviser & Broker)
Stephen Keys / Cameron MacRitchie (Corporate Finance)
Michael Johnson (Sales)
+44 (0)20 7397 8900
Newgate Communications (PR)
Elisabeth Cowell/ Ian Silvera/Jamie Williams
+44 (0)20 3757 6882
Navantia Media Department
+34 91 335 85 55