Harland & Wolff, the historic UK shipbuilder best known for building the Titanic, is on the verge of concluding a £70 million salvage deal with Spanish state-owned shipbuilder Navantia.
The agreement, which is supported by the British Government, is expected to save more than 1,000 jobs at the company’s four UK sites: Belfast, Methil, Arnish and Appledore.
Navantia’s board of directors is scheduled to approve the acquisition in the coming days, after several months of negotiations. Under the proposed transaction, Navantia will assume control of all four Harland & Wolff facilities and commit to retaining the current workforce for a specified period, preserving the skilled jobs and future of the shipyards.
Alongside the acquisition, Navantia is also preparing to secure improved terms for a major contract to build three support ships for the Royal Navy, enhancing the UK’s naval capabilities and providing a much-needed boost to the country’s shipbuilding sector.
This intervention comes after a long period of uncertainty for Harland & Wolff. The company entered administration in September after mounting financial challenges and an inability to secure long-term financing. Harland & Wolff’s attempts to stabilize its finances included multiple loans from US lender Riverstone totaling about $200 million, yet the shipbuilder continued to struggle under the weight of debt and fierce global competition.
In 2019, the former Belfast-based company was rescued from administration by London-based energy company Invertrata. Despite winning a Royal Navy contract in partnership with Navantia in 2022, the company found itself unable to keep up with larger rivals and faced mounting debt payments.
The government’s decision to refuse to guarantee a requested £200 million loan earlier this year has left Harland & Wolff in a precarious position. Business Secretary Jonathan Reynolds stressed that “the market is better placed to resolve commercial issues”, prompting the shipbuilder to pursue private sector solutions rather than rely on public funds.
Founded in 1861, Harland & Wolff’s legacy includes the iconic RMS Titanic and other iconic ships built for the White Star Line. The latest deal, if completed, will ensure that this historic name survives the current turmoil in global shipbuilding, and forge a new future under the ownership of Navantia – a company that employs nearly 4,000 staff in its home country and maintains strong government support.
The British Department for Business and Trade and Navantia declined to comment before the official conclusion of the deal. As Britain’s shipbuilding sector faces changing requirements and intense international competition, this high-profile salvage agreement could represent a turning point, ensuring that Harland & Wolff’s legacy continues to shape the future of UK marine engineering.
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