(Dec 19): Titanic shipbuilder Harland & Wolff (H&W) will be bought by Spanish rival Navantia, as part of a commercial deal supported by the UK government that secures a key defence contract.

Navantia’s purchase of all four of H&W’s shipyards will be completed shortly, the UK Department for Business and Trade said in a statement on Thursday. The deal will ensure delivery of the Ministry of Defence’s contract with Navantia to build three Royal Navy supply ships, after the British government agreed to amend the contract’s commercial terms, it said.

“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,” Business Secretary Jonathan Reynolds said, adding that 1,000 UK jobs have been secured as part of the deal. 

Loss-making shipbuilder H&W had applied for a loan guarantee from the government of as much as £200 million (RM1.13 billion) earlier this year, but it was rejected by the new Labour government — which came to power in July — over concerns it would be too risky for taxpayers.

The UK didn’t give a value for Navantia’s deal for H&W, whose main site is in Belfast, Northern Ireland. It comes after H&W slipped into administration earlier this year, after being bought out of administration in 2019 by InfraStrata, a small energy firm with little experience in shipbuilding. 

The company had become dependent on high-interest loans, and hoped a government guarantee could help it refinance on a more sustainable basis. 

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