Titanic shipyard Harland & Wolff closes in on rescue deal with Navantia

A deal to rescue Harland & Wolff could be formally agreed as early as next week, saving more than 1,000 jobs, according to reports.

Spanish shipbuilder Navantia has won approval to take control of the group’s four UK shipyards, Sky News’ Mark Kleinman has reported.

The government-backed deal will see Navantia pay tens of millions for the Harland & Wolff assets, while also securing a renegotiated version of the Belfast firm’s £1.6bn contract to build three Fleet Solid Support (FSS) ships for the Royal Navy

One insider said the government and Navantia had “compromised” on a request from the Spanish firm for a £300m improvement in Harland’s current value.

Whitehall sources cited by Sky News cautioned that the arrangement has yet to be finalised and remained subject to change.

Navantia declined to comment. A government spokesperson told City AM: “We are continuing to work extensively with all parties to find an outcome for Harland & Wolff that delivers shipbuilding and manufacturing in Belfast, Scotland and across the UK and protects jobs.

“We cannot comment further on commercial matters.”

Harland & Wolff, the Aim-listed shipyard which built the Titanic, fell into administration for the second time in four years in September as debts mounted and it failed to secure government backing for a vital £200m UKEF loan.

Such a deal would be a boost for the Labour administration after British businesses reacted bitterly to the tax hikes announced as part of Rachel Reeves’ October Budget.

Alongside the potential for thousands of job losses, Harland’s collapse put at risk a major Royal Navy contract at a time of heightened global geopolitical tensions.

Northern Ireland’s Economy Minister, Conor Murphy, said in October Navantia, which is already a partner on the Royal Navy contract, was the “type of company” he would like to see buying the embattled shipyard.