HUNDREDS of jobs at two Scottish shipyards have been saved by a deal to rescue a historic builder from administration.
Belfast-based shipbuilder Harland and Wolff – which is best known for building the Titanic and has sites at Methil on the Firth of Forth and Arnish on the Isle of Lewis – formally moved into administration in September. The two Scottish sites employ around 350 people.
The UK Government confirmed the £70 million rescue deal from Navantia, which is owned by the Spanish state, on Thursday.
The deal, which is subject to regulatory approval, is expected to see the company take over the firm's four UK shipyards – the two in Scotland and one in Belfast and one in Appledore, north Devon. In total, more than 1000 jobs will be saved.
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.”
Matt Roberts, national officer at trade union GMB, said: “Today’s announcement is a hugely positive step for retaining UK sovereign manufacturing.
“But despite all four yards remaining open, GMB remains cautious. Without a steady drum beat of work these yards will continue to struggle.
“GMB will continue the fight to ensure that does not happen.”
The company is part of a consortium that landed a major contract to build new fleet solid support ships for the Royal Navy.
It had applied for a £200 million loan guarantee from the Government as part of efforts to restructure its finances.
However, the Government decided in August not to act as a guarantor on the lending – while also ruling out direct funding to maintain the company’s liquidity.
