Navantia, a Spanish shipbuilding company, is currently in exclusive talks to purchase Harland & Wolff. This shipyard in Belfast, which built the Titanic ship, could save up to 1,000 jobs. The group is believed to be able to take over the four yards of the group – Belfast, Appledore in Devon, Arnish, Isle of Lewis, and Methil in Fife as soon as next month.
It is unlikely that a deal will involve pre-packaged administration of the operating firms which run the yards. This could endanger jobs. Currently, only the holding company is under administration.
Navantia is already supporting Harland & Wolff financially to ensure that it continues to operate. The company has a £1.6bn deal with the company for three fleet solid support ships (FSS), which transport vital supplies to aircraft carrier for the Royal Fleet Auxiliary.
According to the original plan, Harland & Wolff would have each manufactured sections of the ship in their yards at Appledore & Cadiz respectively. The sections were then joined in Belfast. Harland & Wolff, the main company of Harland & Wolff, was placed in administration last month. The future of this project is now uncertain.
Sources say Navantia is examining a range of options, including a buyout. It’s not clear yet which option will be implemented. Sunday Telegraph was the first to report on the details of an imminent deal.
Harland & Wolff administrators are believed to be eager to close a deal as soon as possible for their yards so that they can win and confirm new contracts.
Rothschild is running a sale process in which up to 20 companies are interested in purchasing parts of the company. The company controls a proposed LNG storage facility in Northern Ireland and an abandoned ferry service to Isles of Scilly.
Since months, the future of the shipyards was in doubt as officials in government raised concerns about a £200m guarantee loan that could lead to taxpayer losses. Jonathan Reynolds, the business secretary, ruled out the loan guarantee announced by the former Conservative government in August.
Yet Reynolds made it clear to the public in July, that he is confident that Royal Navy vessels will be built in Belfast.
Russell Downs, who was appointed interim executive chairman at Harland & Wolff this summer, stated: “The core business of the four yards of the group continues to be conducted with the support of all stakeholder and we will update our strategic process as soon as it is appropriate.”
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