Troubled shipbuilder Harland and Wolff, which crashed into administration owing more than £160m earlier this year, has been saved.
Spanish state-owned business Navanti has struck a deal to buy the Belfast-based company in a move which will secure 1,000 jobs at Harland and Wolff’s four shipyards – one in Belfast, two in Scotland (Methil on the Firth of Forth and Arnish on the Isle of Lewis) and one in England (Appledore in north Devon).
Harland and Wolff entered administration in September for the second time in five years.
The company, which famously built the Titanic, is a subcontractor in part of a consortium that landed a major contract to build new fleet solid support ships for the Royal Navy.
Navantia UK is the main contractor on that contract.
The purchase agreement, which is subject to regulatory approval, is set to protect workers’ existing terms and conditions.
The government has also agreed to amend the Fleet Solid Support (FSS) Programme contract with Navantia to ensure the company can “still deliver on the contract and build all three Navy ships”.
Business and Trade Secretary Jonathan Reynolds said: “This deal is a major vote of confidence in the UK from Navantia, which will not only secure the future of UK shipbuilding but protect 1,000 jobs across the country and bring future investment into shipbuilding right across the UK.
“National security is the foundation of our Plan for Change – without it we can’t deliver on our milestones to raise living standards across the UK – with good skilled productive jobs.
“That is why we are steadfast in supporting the future of UK shipbuilding. This deal will guarantee our sovereign shipbuilding capability to bolster our Navy and ensure the industry can continue to deliver economic growth and boost coastal communities right across the UK.”
Defence Secretary John Healey added: “This agreement keeps vital defence manufacturing in the UK and protects skilled jobs at historic shipyards across our nations.
“It strengthens our sovereign capability to support Royal Navy operations worldwide, while building the industrial partnerships that will drive growth.”