UK Government poised to agree fate of Harland & Wolff
A deal could be agreed with Navantia by the end of the week (Source: H&W)
Downing Street is nearing a rescue agreement with Spanish state-owned shipbuilder Navantia over the fate of embattled ship builder and repair company Harland & Wolff (H&W), which could lead to an agreement being announced as early as this week.
Four shipyards and some 1,000 jobs are on the line after the UK government neglected to use taxpayer funds to bail H&W out this year, prompting it to go into administration in late September after accruing more than USD 210 million of debt.
But a transaction could be finalised this week, with Sky News reporting that Navantia has won approval from the UK Government to acquire the yards, and an outline agreement now reached, with only a few details remaining to be negotiated, including job guarantees.
The agreement is also expected to offer beneficial terms in the agreement of a contract between the Royal Navy, Navantia and H&W for three Fleet Solid Support (FSS) ships.
“We are continuing to work extensively with all parties to find an outcome for Harland & Wolff that delivers shipbuilding and manufacturing in Belfast, Scotland and across the UK and protects jobs,” a government spokesperson told City AM. “We cannot comment further on commercial matters.”
