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Harland & Wolff saved by deal with Spanish firm

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Navantia already has a business relationship with Harland & Wolff [Getty Images]

Spain’s state-owned shipbuilder has reached a deal to buy Harland & Wolff, the Belfast shipyard best known for the Titanic.

Navantia had been in exclusive negotiations since October after Harland & Wolff’s holding company fell into administration.

All jobs at the firm are expected to be saved in the deal, which also includes Harland & Wolff’s facilities in Scotland and England.

The UK Business Secretary Jonathan Reynolds said the deal was “good for jobs” and “good for national security”.

Jonathan Reynolds walking up Downing Street wearing a suit and tie and carrying a red folder.
[Reuters]

Reynolds said that the deal secures all four Harland & Wolff yards across the UK and guarantees jobs for “years not months in all four of those yards”.

He added that the deal was “a major vote of confidence in the UK from Navantia”.

Asked whether the government had sweetened the deal for Navantia by changing the terms of a contract to deliver three Royal Navy support ships, Reynolds said there had been a “minor revision” to the contract to include “more support” from the government.

The agreement is to be presented as early fruits of the government’s post Brexit “reset”.

Cranes of Spanish state-owned military shipyard Navantia. There are some clouds in the sky.
Navantia’s main shipyard is at Cadiz in southern Spain [Getty Images]

Navantia, which is 100% owned by Spain’s government, has been a significant recipient of funding from the European Commission as part of the European Defence Fund.

Joining the fund is a possible objective for the UK-EU security reset, set to be discussed at a summit early in the new year.

The Spanish economy minister responsible for its state-owned businesses, Carlos Cuerpo, met with Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds in London last month.

Navantia already has a business relationship with Harland & Wolff. It is the main contractor on a project to build three support ships for the Royal Navy, with Harland & Wolff acting as UK subcontractor.

The company employs a core staff of about 1,200 in Belfast, Appledore in England and Methil and Arnish in Scotland.

Navantia’s main shipyard is at Cadiz in southern Spain.

It employs more than 4,000 people and has an annual turnover of about €1.3bn (£835m).

For some people, a takeover by Spain’s national shipbuilder will represent another example of the UK’s industrial decline.

For the Harland & Wolff workforce, it is probably the best possible result.

In 2019, the company’s Norwegian owner decided the shipyard didn’t have a future and it was placed into administration.

It was then bought by a UK company which had ambition but lacked money and expertise.

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