H&W benefit from £2.9bn aircraft carrier contract

Harland & Wolff are set to benefit from a £2.9 billion contract to build two new massive aircraft carriers for the Royal Navy.

The Minister of Defence have awarded the contracts to UK defence giant BAE Systems and French firm, Thales, saying that both organisations should utilise their own particular strengths in completing the contract.

H&W, who tabled an original bid alongside Thales, said they were "confident and optimistic" in playing a major role in the design of the ships.

Around 10,000 jobs are to be created across numerous UK shipyards. However, while no new jobs are likely to be created at H&W, the 70 or so design jobs at the Belfast shipyard are now secured.

Work on the project is to begin next year and will last around two years.

The two 950ft-long, 60,000-tonne carriers will be the biggest British warships ever built. They will replace the Royal Navy's three existing carriers, Illustrious, Invincible and Ark Royal.

Meanwhile, H&W and an American oil company have reached a settlement in their long-running dispute over work carried out by the Belfast shipyard on the second of two drill ships.

The dispute centred on work carried out by H&W for US firm GlobalSantaFe. H&W said the vessel was ready for delivery, but Global Marine refused to accept the ship, saying that it was not completed to its satisfaction.

The settlement includes a minimum payment to H&W of £53.6 million and a possible final settlement of up to £70 million.

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