Belfast shipbuilder Harland & Wolff saved by Spanish firm
Harland & Wolff, the Belfast shipyard famed for constructing the Titanic, has been acquired by Spanish state-owned shipbuilder Navantia in a deal that preserves approximately 1,000 jobs across the UK. This acquisition includes Harland & Wolff’s facilities in Belfast, Appledore in England, and Methil and Arnish in Scotland.
Navantia has been in exclusive takeover talks since October, after Harland & Wolff entered administration in September. The financial terms of the acquisition have not been fully disclosed, but reports suggest the transaction value is around £70m.
The deal ensures Harland & Wolff’s role as a subcontractor for the Fleet Solid Support (FSS) ship programme, a £1.6bn contract to construct three supply vessels for the Royal Navy. Navantia is the primary contractor on this project, with construction taking place across the UK and at Navantia’s facilities in Cádiz, Spain.
Business Secretary Jonathan Reynolds described the agreement as “good for jobs” and “good for national security”. He added that the amended terms of the FSS contract were “relatively minor given the size of that contract” and crucial for ensuring the delivery of all three ships.
“This deal is a major vote of confidence in the UK from Navantia,” says Reynolds. “It will guarantee our sovereign shipbuilding capability, bolster our Navy, and deliver economic growth while boosting coastal communities.”
The acquisition is part of a broader effort by the UK government to reset its relationship with the EU post-Brexit and explore further security and defence collaborations. Navantia, a significant recipient of funding from the European Defence Fund, is involved in multiple projects under the EU’s Permanent Structured Cooperation (Pesco) framework.
Northern Ireland Secretary Hilary Benn hailed the acquisition as ensuring a “bright future” for Harland & Wolff, calling it “an iconic, internationally renowned company with a long and proud history”. DUP leader Gavin Robinson echoed these sentiments, noting that the agreement “secures jobs for years, not months” and provides much-needed stability for employees.
King Charles paid a visit to Harland & Wolff in 2021. Image courtesy of David Cordner.
Navantia plans to expand Harland & Wolff’s role within the UK defence and offshore wind industries. The Spanish shipbuilder has stated that the purchase will enhance UK shipbuilding capabilities and create additional jobs, building on the existing workforce of around 1,000 employees.
Unions representing workers at the shipyards welcomed the deal but cautioned that long-term success would depend on consistent workloads. Matt Roberts, GMB national officer, says: “Despite all four yards remaining open, without a steady drumbeat of work, these yards will continue to struggle.”
The latest acquisition highlights Harland & Wolff’s tumultuous recent history. The company previously entered administration in 2019 before being purchased by InfraStrata, a small energy firm, which rebranded as Harland & Wolff Group Holdings. High debts and reliance on high-interest loans led to further financial difficulties, culminating in the company’s shares being suspended earlier this year.
The deal is expected to be finalised in the coming weeks, following regulatory approvals. Navantia has expressed optimism about the shipyards’ future, with plans to use the acquisition to strengthen its position in the global shipbuilding market.
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