The iconic British shipbuilder Harland & Wolff, renowned for constructing the Titanic, is set to be rescued through a £70 million acquisition by Spanish state-owned shipbuilder Navantia. The deal, supported by the British government, is expected to preserve more than 1,000 jobs across four UK sites.
Navantia’s board is poised to approve the rescue package following months of complex negotiations. The agreement encompasses Harland & Wolff’s strategic facilities in Belfast, Methil, Arnish, and Appledore, safeguarding vital manufacturing capabilities across the British shipbuilding sector.
The Spanish maritime giant has committed to maintaining the existing workforce for a specified duration, providing crucial job security at all locations. The deal includes improved terms for an existing Royal Navy contract to construct three support vessels, strengthening the company’s position in defence manufacturing.
The rescue arrives at a critical juncture for Harland & Wolff, which entered administration in September after financial reviews revealed insufficient long-term funding. The company had previously accumulated approximately $200 million in debt through its relationship with American lender Riverstone Credit Management.
The acquisition marks a significant shift for the historic shipbuilder, which was last rescued from administration in 2019 through a £6 million buyout by Infrastrata. Despite securing prestigious contracts, including a partnership with Navantia for Royal Navy vessels in 2022, the company struggled with mounting debt obligations and intense market competition.
Labour Business Secretary Jonathan Reynolds had previously rejected a £200 million loan guarantee request, stating that government intervention carried substantial risks to taxpayer money. The private sector solution through Navantia appears to align with the government’s preference for market-driven resolutions to commercial challenges.
This strategic acquisition by Navantia, which employs nearly 4,000 staff and operates primarily from Cadiz, represents a new chapter for the Belfast-based shipbuilder that has been a cornerstone of British maritime manufacturing since its establishment in 1861.
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