Navantia on cusp of £70m rescue deal for Titanic shipyard Harland & Wolff
Harland & Wolff is on the cusp of securing a government-backed rescue deal worth £70m, which will also see job guarantees for the embattled shipyard’s workforce.
Sky News reported ministers are hoping to announce Harland’s acquisition by the Spanish shipbuilder Navantia as early as Thursday.
Such an agreement would see Navantia buy the Aim-listed firm’s assets, after its parent company collapsed into bankruptcy earlier this year. It will also take charge of a key Military of Defence (MoD) contract to build three Fleet Solid Support (FSS) ships for the Royal Navy.
However, Whitehall sources also cautioned the takeover may take up to Christmas to be formally announced. The government declined to comment on commercial matters when approached by City PM.
The collapse of Harland & Wolff, the iconic Belfast shipyard responsible for building the Titanic, has proved a key test for Labour after a decision to withhold a £200m loan guarantee over summer all but guaranteed its administration.
One government source cited by Sky hailed the deal as “a victory” for Keir Starmer. Navantia has reportedly agreed to provide a guarantee it will retain Harland & Wolff’s existing workforce for a specific period, which is as yet unknown.
Navantia’s board is expected to meet to ratify the deal over the next couple of days, according to Sky. The firm had sought a £300m improvement to the FSS contract, which it was already working alongside its struggling competitor.
Harland & Wolff currently employs over 1,000 workers four shipyards in Belfast, Devon; Arnish on the Isle of Lewis, and Fife.
The group’s administration was its second in four years, after it was rescued by the London-based energy firm Infrastrata for £6m, in 2019.