Irish shipyard Harland & Wolff has been saved from the edge of bankruptcy by a Spanish state-owned shipbuilder.
The dire circumstances at Harland & Wolff reached the public this past summer, after suffering consecutive losses of £58.5m ($75 million USD) and £24.7 m ($318 million USD) in 2022 and 2023, respectively.
The Belfast-based company built the iconic Titanic in Ireland beginning in 1909. The loss of the ship is widely considered one of maritime history's worst tragedies. Its sinking off the coast of Newfoundland resulted in the loss of 1517 lives. It was on its maiden voyage from Southampton, England to New York City on April 14th, 1912. Titanic was one of three ships built by Harland & Wolff and the British shipping company White Star Line. Now the famed shipyard has been purchased by Navantia, a Spanish state-owned shipyard. After Harland & Wolff went into administration in September, Navantia had been in exclusive negotiations to take over the famous brand. The deal is reported to be worth an estimated £70 million ($87 million USD).
The agreement will secure Harland & Wolff’s role as a subcontractor in the Fleet Solid Support (FSS) ship programme—a £1.6 billion project to build three supply vessels for the Royal Navy. Navantia, now the primary contractor, will oversee construction at facilities in the UK and in Cádiz, Spain. The issue of job loss in the UK marine industry has been in the public eye for months, much of centered around Harland & Wolff and its historical significance to the the country and the marine industry at large. The deal is expected to preserve about 1000 existing jobs.
Business Secretary Jonathan Reynolds described the deal as a boon for employment and national security. “This agreement represents a significant vote of confidence in the UK from Navantia,” Reynolds said according to the BBC. “It safeguards our sovereign shipbuilding capability, strengthens our Navy, stimulates economic growth, and supports coastal communities.”
Navantia aims to broaden Harland & Wolff’s role in the UK defense and offshore wind sectors. The Spanish company also plans to use the acquisition to enhance UK shipbuilding capacity, create more jobs, and build on the current workforce of approximately 1,000 employees.
Union representatives in the UK welcomed the deal, but also stressed the need for consistent workloads to ensure the shipyards’ long-term viability. Matt Roberts, GMB national officer, warned: “Even with all four yards remaining open, without a steady pipeline of work, they will continue to face challenges.”
Northern Ireland Secretary Hilary Benn praised the acquisition, calling it a step toward securing a “bright future” for Harland & Wolff, which he described as an “iconic company with a long and proud history.” DUP leader Gavin Robinson echoed these sentiments, emphasizing the agreement’s importance in providing long-term job security and stability for workers.
The deal is expected to close in the coming weeks, pending regulatory approvals. Navantia has expressed optimism about the shipyards’ prospects and plans to leverage the acquisition to strengthen its position in the global shipbuilding market. #news
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