An agreement to safeguard 1,000 shipbuilding jobs in the UK and assure Harland & Wolff's future
Posted on Dec 26, 2024 at 09:12 PM
A rescue plan including the purchase of Belfast-based Harland & Wolff by a Spanish state-owned shipbuilder would protect all four of the company's facilities and save over 1,000 jobs.
Notably, H&W's Belfast shipyard, where the Titanic was built, the Arnish and Methil yards in Scotland, and the Appledore plant in Devon will all be acquired by Navantia, bringing an end to months of uncertainty for its workers.
Navantia's Role in the FSS Programme
The UK government enhanced the conditions of a £1.6 billion contract to build three fleet solid support (FSS) ships, which provide dry items like food to Royal Navy vessels. The precise amount it paid for H&W's assets was not made public, although it was rumoured to be £70 million.
Since H&W went into administration in September due to politicians' refusal to offer taxpayer-funded help to keep the company functioning, negotiations between Navantia and the UK government have been ongoing.
On the FSS contract, the Spanish shipyard was able to negotiate a cheaper price. The ships, which will serve the UK carrier strike group of the Royal Navy, are being built in Belfast, Appledore, and Puerto Real, close to Cadiz, Spain, with Navantia UK as the principal partner.
Moreover, the FSS deal's terms were not disclosed due to commercial sensitivity, but it seems to transfer financial guarantees to Navantia and eliminate government loans for shipyard support.
Jonathan Reynolds, the business secretary, stated that government guarantees or loans to H&W would have been irresponsible and risked taxpayers' money.
In addition to “all four yards,” he said that the rescue had “secured the jobs in the Belfast yard for three years and two years in the three other yards.” He said that there would be “no large foreseen delay” in the three FSS boats' delivery.
Securing the FSS Plan's Future
The contract is viewed as a component of the UK government's attempt to “reset” ties with the EU and establish a new military and security agreement with the group.
Remarkably, the Spanish government owns all of Navantia, which is participating in six €520 million (£430 million) European Defence Fund projects, including those funded by the Permanent Structured Cooperation (Pesco) treaty framework.
The agreement follows Carlos Cuerpo, the Spanish minister of economics, meeting Rachel Reeves, the UK chancellor, and Reynolds in London a few weeks prior.
Furthermore, the Northern Ireland secretary, Hilary Benn, stated that the agreement assured the completion of the FSS plan to build three Royal Navy ships. The contract will preserve around 500 jobs in Belfast.
The Belfast shipyard and Navantia already have a partnership, and Navantia declared the agreement will “enhance UK shipbuilding, defence and offshore wind industry capabilities.”
According to John Healey, the defence secretary, the deal will maintain “vital defence manufacturing in the UK” and increase sovereign capacity to assist the Royal Navy while fostering prosperity.
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