The deal to sell Harland & Wolff to Spain’s state-owned shipbuilder Navantia is expected to guarantee hundreds of jobs at the Belfast yard for at least 10 years.
The UK’s Business Secretary Jonathan Reynolds said part of the agreement includes protection for workers following the completion of a seven-year programme to build three support vessels for the Royal Navy.
“The deal we have brokered guarantees not only all four yards but the jobs in the Belfast yard for three years, and for two years in the three other yards,” he told the House of Commons.
“And therefore we have a chance not just for new investment coming into those yards, [but] for the long-term future to be secured, for a pipeline of work and energy and defence contracts - a really vibrant and successful opportunity for the future.”
Alongside Belfast, Navantia is acquiring two yards in Scotland and a fourth site in Devon.
The value of deal, which is subject to regulatory approval, has not yet been disclosed, but Sky News previously reported Navantia could pay around £70 million for the yards.
The Department for Business and Trade also confirmed it has agreed to amend the original £1.6 billion Royal Navy contract awarded to Team Resolute, the Navantia-led consortium that included Harland & Wolff.
The three vessels, which will be used to transport munitions, spares and supplies to UK aircraft carriers, are due to be built in Belfast, Appledore and Cádiz over a seven year programme, due to commence in 2025.
The original contract was understood to be worth around £700m for Harland & Wolff.
The UK government said the new deal “makes the minimum changes necessary to ensure Navantia can still deliver on the contract and build all three navy ships”.
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“I hope this announcement will come as some relief to Harland and Wolff’s employees,” said Mr Reynolds.
“I realise this has been a deeply worrying time for them and everyone affected by the continued speculation over the firm’s future.
“I welcome Navantia UK’s intention to work closely with the relevant unions and to protect workers' existing terms and conditions.
“That’s important for the hardworking employees and communities who have served the firm over many years.”
The Business Secretary added: “The former government’s inability to make a decision left the yards and the workforce in limbo and that is why I made clear in my first weeks in this job that no taxpayer guarantee or loan would be provided.”
The collapse of Harland & Wolff followed its failure to secure the backing of the new Labour government to provide a guarantee on £200m of new borrowing in a bid to refinance a high interest loan with Riverstone.
InfraStrata, which bought the company out of administration in 2019, had turned to the New York-based lender in a bid to support its significant spending to scale up the business.
The high up-front costs left Harland & Wolff with £113m in losses across 2022 and 2023.
