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Spanish state-owned shipbuilder Navantia has agreed to buy Harland & Wolff, rescuing the ailing Titanic builder whose parent company has been in administration since September.
The UK’s Department for Business and Trade said the deal, which is subject to regulatory approval, would save 1,000 UK jobs at H&W’s four shipyards in Northern Ireland, Scotland and England, but it gave no financial details.
Navantia in 2022 secured a £1.6bn contract to build a trio of ships for the UK Royal Navy with H&W and has been in discussions for months to buy the beleaguered company, which fell into administration twice in five years and was hobbled by high debts.
The Spanish group had been pushing to increase the value of that Fleet Solid Support ship contract but did not confirm whether it had succeeded in clinching improved terms.
“This deal is a major vote of confidence in the UK from Navantia,” Jonathan Reynolds, business and trade secretary, said in a statement, predicting it would “bring future investment into shipbuilding right across the UK”.
John Healey, UK defence secretary, said it was a “major investment into the UK’s industrial base . . . and will provide opportunities for future naval work at Harland & Wolff’s shipyards across the country”.
The GMB union, which represents some of the workers at H&W’s shipyards, called the announcement “hugely positive”, but said it remained cautious. “Without a steady drum beat of work, these yards will continue to struggle,” said Matt Roberts, GMB national officer.
Union leaders were expected to meet Navantia later on Thursday.
H&W has previously said it employs 1,200 people across the four yards, but no job losses were confirmed. Roberts said the union had a “verbal agreement with Navantia that all jobs will be protected and they said more jobs will be created as well”.
Industry figures said they believed Navantia could use its purchase of H&W to vie for a big upcoming Royal Navy multi-role support ship contract.
In a statement, Navantia said it expected the purchase to be completed next month. The company declined to comment on the upcoming contract.
The crisis at H&W, which built the Titanic ocean liner a century ago, has been an early test of the Labour government’s approach to industrial strategy.
H&W’s parent company had its Aim-listed shares suspended in July, just three days before the UK general election, after a mounting cash crisis.
Ministers had been urging Navantia to buy H&W after ruling out financial support for the shipbuilder.
Hilary Benn, the UK’s Northern Ireland secretary, heralded a “bright future ahead” for “an iconic, internationally renowned company with a long and proud history”.
But some at H&W said experienced staff had already left or were about to leave, leading to a potential shortage of skilled engineers.
