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Fears are growing that the Spanish front-runner to rescue Harland & Wolff will buy only the shipbuilder’s Belfast yard, risking hundreds of job losses across sites in Scotland and Devon.
Navantia, the Spanish state-owned company that is favourite to buy the stricken builder of the Titanic, is understood to be focused on acquiring only the yard that will play an important role in a £1.6 billion Royal Fleet Auxiliary contract.
Harland & Wolff also has sites in Appledore, Devon, as well as Methil and Arnish in Scotland.
Harland & Wolff last week confirmed plans to put the business into administration after failing to secure a £200 million government-backed loan. Investment bankers from Rothschild are running a sale process that will lead to the listed parent company being declared bankrupt.
The Appledore yard built small vessels for the Royal Navy during the Second World War. It was closed in 2019 by owner Babcock, but bought by Harland & Wolff the following year. The two sites in Scotland face competition from larger yards on the River Clyde.
In theory, a retendering of the £1.6 billion Ministry of Defence contract for three support ships could be triggered by the insolvency of Harland & Wolff’s parent. The board, however, is confident that it will convince ministers to stick with Harland & Wolff.
The government said: “We know this will be a concerning time for those affected and we are clear that, following a thorough review of the company’s financial situation, at present the market is best-placed to address these challenges.
“We are continuing to work extensively with all parties to find an outcome for Harland and Wolff that delivers shipbuilding and manufacturing in Belfast, Scotland and across the rest of the UK and protects jobs.”