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Harland & Wolff set to be saved in deal with Spanish firm | |
(about 1 hour later) | |
Navantia already has a business relationship with Harland and Wolff | Navantia already has a business relationship with Harland and Wolff |
Spain's state-owned shipbuilder is expected to confirm on Thursday that it is buying Harland and Wolff, the Belfast shipyard best known for Titanic. | Spain's state-owned shipbuilder is expected to confirm on Thursday that it is buying Harland and Wolff, the Belfast shipyard best known for Titanic. |
Navantia has been in exclusive negotiations since October after Harland and Wolff's holding company fell into administration. | Navantia has been in exclusive negotiations since October after Harland and Wolff's holding company fell into administration. |
All jobs at the firm are expected to be saved in the deal, which is also thought to include Harland and Wolff's facilities in Scotland and England. | |
The BBC understands that an announcement is also expected to be made in parliament on Thursday. | |
Navantia's main shipyard is at Cadiz in southern Spain | Navantia's main shipyard is at Cadiz in southern Spain |
The government may announce that it is improving the terms of that deal to reflect increased costs. | The government may announce that it is improving the terms of that deal to reflect increased costs. |
The agreement is to be presented as early fruits of the government's post Brexit "reset". | |
Navantia, which is 100% owned by Spain's government, has been a significant recipient of funding from the European Commission as part of the European Defence Fund. | |
Joining the fund is a possible objective for the UK-EU security reset, set to be discussed at a summit early in the new year. | |
The Spanish economy minister responsible for its state-owned businesses, Carlos Cuerpo, met with Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds in London last month. | |
Navantia already has a business relationship with Harland and Wolff. It is the main contractor on a project to build three support ships for the Royal Navy, with Harland and Wolff acting as UK subcontractor. | |
The company employs a core staff of about 1,200 in Belfast, Appledore in England and Methil and Arnish in Scotland. | The company employs a core staff of about 1,200 in Belfast, Appledore in England and Methil and Arnish in Scotland. |
Navantia's main shipyard is at Cadiz in southern Spain. | Navantia's main shipyard is at Cadiz in southern Spain. |
It employs more than 4,000 people and has an annual turnover of about €1.3bn (£835m). | It employs more than 4,000 people and has an annual turnover of about €1.3bn (£835m). |
What is the history of Harland & Wolff? | What is the history of Harland & Wolff? |
In 2019, H&W's then Norwegian owners withdrew financial support | In 2019, H&W's then Norwegian owners withdrew financial support |
Harland and Wolff was founded in 1861 by Yorkshireman Edward Harland and his German business partner, Gustav Wolff. | Harland and Wolff was founded in 1861 by Yorkshireman Edward Harland and his German business partner, Gustav Wolff. |
By the early 20th Century, Harland and Wolff dominated global shipbuilding and had become the most prolific builder of ocean liners in the world. | By the early 20th Century, Harland and Wolff dominated global shipbuilding and had become the most prolific builder of ocean liners in the world. |
However, in the period since World War Two it has lurched from crisis to crisis and was under UK state control from 1977 to 1989. | However, in the period since World War Two it has lurched from crisis to crisis and was under UK state control from 1977 to 1989. |
In 2019, its then Norwegian owners withdrew financial support and the business fell into insolvency, having not built a ship in a generation. | In 2019, its then Norwegian owners withdrew financial support and the business fell into insolvency, having not built a ship in a generation. |
The government may announce an improved deal to reflect increased costs | The government may announce an improved deal to reflect increased costs |
It was bought by Infrastrata, a small London-based energy firm which did not have significant experience in marine engineering. | It was bought by Infrastrata, a small London-based energy firm which did not have significant experience in marine engineering. |
Infrastrata later changed its name to Harland and Wolff and in 2022 won the Royal Navy contract as part of a consortium led by Navantia. | Infrastrata later changed its name to Harland and Wolff and in 2022 won the Royal Navy contract as part of a consortium led by Navantia. |
However, financial losses mounted as it scaled up its operations and it became increasingly reliant on high-interest borrowings from a specialist US lender, Riverstone. | However, financial losses mounted as it scaled up its operations and it became increasingly reliant on high-interest borrowings from a specialist US lender, Riverstone. |
The company sought a £200m government loan guarantee to refinance its borrowings but that was rejected for being too risky for taxpayers. | The company sought a £200m government loan guarantee to refinance its borrowings but that was rejected for being too risky for taxpayers. |
Its holding company entered administration in September and restructuring expert Russell Downs was appointed to run the business and find a new owner. | Its holding company entered administration in September and restructuring expert Russell Downs was appointed to run the business and find a new owner. |