Harland & Wolff Close to Securing Government-backed Rescue Deal with Navantia

December 8, 2024

By Evans Momodu
3 minutes read

The Belfast-based shipbuilder Harland & Wolff (H&W) is on the brink of being rescued by the Spanish shipbuilding group Navantia, in a government-supported deal that could save over 1,000 jobs across the UK.

The move would see Navantia acquire H&W's four shipyards and renegotiate a key Royal Navy contract, potentially securing the future of this iconic company.

Key Details of the Deal:

Buyer: Navantia, a leading Spanish shipbuilding company, is set to acquire H&W's assets for tens of millions of pounds.
Revised Contract: The deal includes renegotiation of a contract for three Fleet Solid Support (FSS) ships for the Royal Navy. Sources suggest Navantia sought a £300 million enhancement in the contract's value, with a compromise reached between the company and the UK government.
Jobs Secured: Over 1,000 manufacturing jobs in Belfast, Devon, the Isle of Lewis, and Fife are expected to be saved as part of the agreement.
Navantia's Role: The Spanish firm has been providing financial support to H&W since its parent company entered administration in September.
Government Involvement: The UK government has endorsed the deal, with close scrutiny to ensure compliance with European state aid rules.

Background:

H&W's Legacy: Established 163 years ago, Harland & Wolff is best known for building the Titanic. However, it has faced financial struggles in recent years.
Collapse into Administration: H&W’s parent company failed to secure taxpayer support earlier this year, prompting its collapse.
Sale Process: The shipyards were put up for sale by Rothschild following the administration filing.

Strategic Implications:

This rescue represents a significant collaboration between the UK and Spanish governments, offering hope for British manufacturing at a time of economic uncertainty.

It also marks a continuation of Navantia's involvement in UK naval projects, strengthening ties between the two countries' shipbuilding industries.

An announcement on the finalised deal is anticipated before Christmas, delivering a rare piece of positive industrial news for Prime Minister Sir Keir Starmer’s administration amid criticism of recent economic policies.
Source: Sky news