InfraStrata acquires Appledore Shipyard in £7m deal
Leading strategic infrastructure projects and physical asset lifecycle management company InfraStrata plc has acquired the historic and highly strategic Appledore Shipyard in North Devon in a £7m deal.
The UK-based, London Stock Exchange-listed firm specialises in the development, commercialisation and operation of advanced, high-value, strategic infrastructure facilities.
The new deal follows InfraStrata’s acquisition of the famous Harland & Wolff Shipyard in Belfast last year and reinforces the company as a major player in the UK maritime and offshore engineering industry.
“Within the UK and Europe alone, there is an estimated £6bn pipeline of opportunities over the next five years,” said InfraStrata CEO John Wood.
“In the UK there is currently insufficient shipbuilding capacity to meet demand. There are a substantial number of UK vessels that require replacement within the next 10 years, including 150 UK sovereign commissioned vessels,” he added.
“Brexit will provide increased opportunities and additional demand for home-based industries. Both Belfast and Appledore will work symbiotically in revitalising the UK’s shipbuilding industry, one of the flagship programmes of the government under the national shipbuilding policy. Further with the policies of “build, build, build” and the desire for levelling up across the country, Belfast and Appledore will play a crucial role in making these policies successful at the ground level,” he added.
Whilst most shipyards, both domestic and international, focus on the hugely competitive mid-market sector, InfraStrata believes the most significant growth opportunities lie at either end of the spectrum.
“With two dry docks each at 356 metres and 556 metres in length respectively, H&W (Belfast) comprises two of the largest drydocks in the UK, the second largest in Europe,” said John.
“H&W (Appledore), on the other hand, with a covered drydock length of 119 metres, provides a vital asset for some of the smallest vessels.There are very few shipyards in the UK that can offer this type of undercover building dock and repair facility,” said John.
“This combination gives us a secure market position and the ability to service a wider range of contracts more efficiently. By leveraging both yards we can provide flexible capacity management and economies of scale, giving us an enhanced competitive-edge.
“We have a flexible and adaptable workforce able to deliver a wide range of contracts across five key sectors, commercial fabrication, defence, cruise & ferry, renewables, and oil & gas,” he added.
As part of its new remit, the shipyard will provide complete lifecycle management from technical services, fabrication & construction, to in-service support, repair and maintenance, and conversion all the way to decommissioning. It will also be able to accommodate other projects like steel fabrication for industry and construction.