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| Harland & Wolff saved by deal with Spanish firm | |
| (about 7 hours later) | |
| Navantia already has a business relationship with Harland & Wolff | |
| Harland & Wolff, the Belfast shipyard best known for the Titanic, has been saved by a deal with Spain's state-owned shipbuilder. | |
| Navantia had been in exclusive negotiations since October after Harland & Wolff's holding company fell into administration. | |
| About 1,000 jobs are to be saved in the deal, which also includes Harland & Wolff's facilities in Scotland and England. | |
| The UK Business Secretary Jonathan Reynolds said the deal was "good for jobs" and "good for national security". | |
| Reynolds said that the deal secures all four Harland & Wolff yards across the UK and guarantees jobs for "years not months in all four of those yards". | |
| He added that the deal was "a major vote of confidence in the UK from Navantia". | |
| Asked whether the government had sweetened the deal for Navantia by changing the terms of a contract to deliver three Royal Navy support ships, Reynolds said there had been a "minor revision" to the contract to include "more support" from the government. | |
| The agreement is to be presented as early fruits of the government's post Brexit "reset". | The agreement is to be presented as early fruits of the government's post Brexit "reset". |
| Navantia's main shipyard is at Cadiz in southern Spain | |
| 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. | 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. | 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. | 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 & Wolff. It is the main contractor on a project to build three support ships for the Royal Navy, with Harland & 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 does Harland & Wolff mean to east Belfast? | |
| Anne Higgins, Harry Fisher and Joanne Watton all have fond memories of the Harland & Wolff shipyard in east Belfast | |
| For people in Belfast, particularly the east of the city where the yellow cranes, Samson and Goliath, cast their shadows, this takeover will be good news. | |
| Café worker Anne Higgins' family members worked in the Harland & Wolff shipyard in east Belfast. | |
| "It's very iconic for Belfast," she told BBC News NI. | |
| Harry Fisher worked in the shipyard in the 1960s. | |
| "It means everything to this side of the city," he said. | |
| "If it ever folds, I don't know what the people of east Belfast would do. The two cranes will be there forever." | |
| He recalled "thousands of men walking down his street" to get to the shipyard in the morning for work. | |
| Joanne Watton told BBC News NI that the cranes are such a "beautiful sight". | |
| "When you're on a plane and see the cranes, you know you're home." | |
| Analysis: Probably the best result for Harland & Wolff | |
| For some people, a takeover by Spain's national shipbuilder will represent another example of the UK's industrial decline. | |
| For the Harland & Wolff workforce, it is probably the best possible result. | |
| In 2019, the company's Norwegian owner decided the shipyard didn't have a future and it was placed into administration. | |
| It was then bought by a UK company which had ambition but lacked money and expertise. | |
| Now it is heading into the ownership of an established shipbuilder which has the financial backing of the Spanish state. | |
| What is the history of Harland & Wolff? | What is the history of Harland & Wolff? |
| Harland & Wolff was founded in 1861 by Yorkshireman Edward Harland and his German business partner, Gustav Wolff. | |
| By the early 20th Century, Harland & 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 & 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. |