Christmas rescue confirmed for Harland & Wolff

In the UK House of Commons on Thursday lunch time, Business and Trade secretary Jonathan Reynolds told MPs that a good deal had been struck and 1,000 jobs had now been saved in the four shipyards of Harland & Wolff, one in Northern Ireland, one in southern England, and two in Scotland.

“A commercial deal has been reached that will protect jobs, drive investment and secure the future of the workforce,” said Reynolds. “It is a deal that will see Navantia UK, a specialist in shipbuilding, purchasing all of Harland & Wolff’s shipyards.”

Harland & Wolff has been struggling for some time, and the new government on taking power in July withdrew a loan guarantee that had been pledged by the previous administration.

“I’m delighted that we have been able to secure this future for Harland & Wolff. Had we gone ahead with the government guarantee or loan, the money would have gone to the creditors. I hope it will come as some relief as it’s been a deeply worrying time.”

An existing contract for three FSS ships (naval logistics support vessels) would be fulfilled, Reynolds said, and while he said the earlier stated contract value of £1.6 billion for these would not be materially changed, he cited ‘commercial sensitivity’ in giving no further details. 

“”There is no large foreseen delay to the project,” he said, also promising that all assembly would be kept in the UK shipyards and not be carried out in Navantia’s Spanish facilities.

Reynolds said the government had not given any ‘support’ to help the deal with Navantia go through, and Navantia would not give details of how much it has paid for the assets.

“This is an outstanding Christmas present for the 1,000 employees that will benefit from this outstanding decision,” said LibDem MP for Torbay Steve Darling.

Navantia statement

“Navantia UK, Navantia’s British subsidiary, has begun talks with the UK company Harland & Wolff to acquire its activities in Northern Ireland (Belfast), England (Appledore) and Scotland (Methil and Arnish), and ensure compliance with the Fleet Solid Support (FSS) shipbuilding programme in a market as important as the UK, the Navantia statement says, adding that it was the main contractor for the FSS programme, the largest export contract in the company’s history.

“Under the agreement, which is subject to negotiation and relevant regulatory approvals, Navantia’s UK subsidiary will manage Harland & Wolff’s industrial capabilities by applying its expertise in shipbuilding, complex programme management and knowledge transfer,” the statement said.

“The agreement is expected to be completed during the month of January 2025. Navantia UK positively values the British Government’s commitment to the FSS shipbuilding programme and guarantees its execution and the strengthening of local industrial capacities, in accordance with the needs of the shipbuilding and defence market in the United Kingdom.”

Vows to maintain UK shipbuilding

UK shipbuilding, the House of Commons heard, was worth £2.4 billion (€2.9 billion) a year to the UK economy, Reynolds said, supporting 42,500 jobs.

Reynolds told parliament that the government was determined to sustain the industry, both in defence and commercial sectors, and that the deal was a sign of confidence in the sector.

“It’s a good deal for British shipbuilding. It provides the best opportunity to sustain our essential sovereign shipbuilding capacity and capability now and over the long term,” he said. 

“We recognise how important it is as a vital pillar of our civil and defence industrial base. That’s why my department, together with the Ministry of Defence and the National Shipbuilding Office, is going everything we can to bolster our world-class shipbuilding industry.”