Navantia entrusts a plan to Boston Consulting and McKinsey to get out of the crisis after the pandemic

The Navantia management team tries to reposition the public shipyard in the context of pandemic and economic crisis. The firm 100% owned by SEPI has commissioned two action plans two of the most recognized consulting firms worldwide: Boston Consulting and McKinsey.

The company – which he has chaired since October 2020 Belén Gualda– You want to carry out a comprehensive analysis of the impact of covid-19 in the sector and the solutions adopted. On the other hand, it also seeks support to define projects that diversify the group’s business with contributions in offshore wind, clean fuels, sustainability Y digitization. Precisely, areas of growth in which the European Union is influencing and where it wants to direct the grants for post-pandemic reconstruction through the Next Generation fund.

In this repositioning, Boston Consulting will be in charge of contributing its experience to the business expansion internationally, while McKinsey will work for the diversification in other areas alternatives to the usual Navantia business, focused on the military and defense sector.

Logo de McKinsey. (Reuters)

“Currently, Navantia is faced with the need to strengthen your strategic position in priority markets “, highlights the signature in its official documentation.” On the one hand, the military naval market is highly competitive and opportunities have a high concentration in certain countries where all international shipyards compete. On the other hand, covid-19 is generating an unprecedented social and economic crisis at a global level, which is causing Navantia’s main competitors to reinforce their actions, involving the institutions of their States in high-level relationships in the main export markets “, explains the public firm.

In this sense, it claims more involvement of public institutions and organizations: “the crisis derived from covid-19 represents a unique opportunity to take advantage of the will to collaborate between public and private organizations. In this sense, collaboration with other national agents in positioning in the international arena “.

Therefore, the objective for which Boston Consulting is entrusted is “to identify the actions necessary to improve the Strategic positioning of Navantia in its exports, by creating a strategy at the country level involving key institutions and organizations at the national level, as other competitors do, and in response to the impact of the covid-19 crisis. “That is, it seeks to” define the high-level lines of Navantia’s strategy as part of the Spanish State. ”

Tasks the creation of a strategy at the country level involving key institutions and organizations at the national level

In this way, the selected professionals must be qualified in this task. Specifically, it requires “experience working with public institutions in Spain and the EU, including key agents such as the Ministry of Industry, Trade and Tourism, the Ministry of Foreign Affairs, the European Union, etc. “. Have knowledge in the defense sector in Europe and have worked with European firms dedicated to shipbuilding, as well as mastering defense export issues.

This repositioning occurs in a company that has lost 1,000 million euros in the last five years (it reduced its red numbers in 2019, the last audited year, to a deficit of 146 million). Without going any further, last year he ran out of options in an order for frigates to the United States that would have resulted in a turnover of 5,000 million.

Now he asks for greater collaboration from the authorities, after some statements by members of the Government of Pedro Sánchez about the Saudi regime put the order of five corvettes committed to that country.

Diversification with renewables

Apart from the above, Navantia is looking for other business niches. “The current situation is bringing a paradigm shift that will have a strong impact on the naval sector,” acknowledges the company, adding that it is “necessary to reflect on Navantia’s opportunities in areas other than your core business of military shipbuilding “.

In this way, the public company has commissioned McKinsey to identify, define and analyze strategic projects specific around four areas that have been identified as key for the future: offshore wind, clean fuels, sustainability and digitization.

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In this sense, he explains that, “since they are areas in which Navantia is not necessarily the market leader in Spain, as is the case in shipbuilding, it is necessary to assess the projects where Navantia play a leadership role, but also projects where Navantia plays a secondary role to the role of a leading company in those sectors of opportunity “.

In this sense, it should be noted that Navantia has been a supplier to Iberdrola in ‘offshore’ projects. In addition, it is present in a project to produce green hydrogen with Naturgy and Enagás. It also participates together with the Cádiz Free Zone in projects related to clean energy.

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