Belfast shipbuilders bought out of administration by Spanish interests.

Harland & Wolff, the Belfast headquartered shipbuilding company, has been bought out of administration (the British legal equivalent of bankruptcy protection). A deal has been agreed with Navantia, the Spanish government backed consortium, based in Cadiz. The announcement was made this morning (Thursday 19 December).

Saved from going under for the second time in five years, Harland & Wolff may just have found an owner, ready to steady the financial helm. Navantia’s purchase has been warmly welcomed by the British government. The iconic yard, whose cranes dominate the Belfast skyline, is a demonstrative symbol of British administration in Northern Ireland. The political consequences of closure would be far-reaching.

White knight for White Star builders

Navantia had been in talks with Harland & Wolff since October, shortly after H&W collapsed into administration. Most famously, the shipyard that laid down the Titanic ocean liner for the White Star Line, but the company has found itself in choppy financial waters several times. Its current predicament is the second such spell of administration in just five years.

The Cadiz based buyers, however, seem to have an insight, and propose that the entire workforce in Belfast (variously put at between 800 – 1000) will be thrown a lifeline. Navantia is backed by the Spanish government, and it was already more than twice the size of Harland & Wolff, with 4000 employees. That said, H&W is just a shadow of its former self. At one time, it employed 35,000 in its vast yards.

Shining armour of Royal Navy contracts

H&W has three other smaller dockyards around the UK—one in the southwest of England and two in Scotland—employing about 400 people overall. WorldCargo News understands that these yards are secured as part of the deal, which is reported to be worth £70m.

As reported earlier in WorldCargo News, much of the shipyard has been decommissioned. It now forms the centrepiece of the Titanic Quarter cultural area, referencing the yard’s most famous keel. Tourism though is not on the mind of Navantia. They have far more interest in the existence of a contract (in which they already participate) to build three support vessels for the Royal Navy.

Yards around the UK

A statement on Thursday morning, from the UK government’s Department for Business and Trade, confirmed the purchase. “The Deal, which is subject to regulatory approval, secures the future of all four Harland & Wolff shipyards in Northern Ireland (Belfast), Scotland (Arnish and Methil) and Devon (Appledore), and protect workers’ existing terms and conditions.

“It will also ensure the delivery of the Ministry of Defence’s contract with Navantia to build three Royal Navy ships which would transport munitions, spares and supplies to UK aircraft carriers – the Fleet Solid Support (FSS) Programme.”

Government ministers make statements

Government ministers in Britain were eager to leap aboard. “This deal is a major vote of confidence in the UK from Navantia,” said Business & Trade Secretary Jonathan Reynolds, who was also eager to point out that the deal will secure the future of UK shipbuilding and bring future investment right across the UK. He did not explain why it took a foreign government-backed commercial interest to provide the funds to back up that “major vote of confidence”.

The defence contracts, part of the Fleet Solid Support (FSS) Programme, drew comment from the Defence Secretary, John Healey. “This agreement keeps vital defence manufacturing in the UK and protects skilled jobs at historic shipyards across our nations,” he said. “It strengthens our sovereign capability to support Royal Navy operations worldwide, while building the industrial partnerships that will drive growth.”

The Department for Business and Trade added that the deal was subject to unspecified regulatory approval.