Harland & Wolff, the historic British shipbuilder famous for building the Titanic, is on the brink of a £70 million bailout deal with Spanish state-owned shipbuilder Navantia.
The deal, backed by the UK government, is expected to safeguard more than 1,000 jobs across the company’s four UK sites: Belfast, Methil, Arnish and Appledore.
Navantia’s board will approve the takeover in the coming days, after months of negotiations. Under the proposed deal, Navantia will take control of all four Harland & Wolff facilities and commit to retaining current workforces for a period of time, securing both the skilled positions and the future of the shipyards.
In addition to the acquisition, Navantia is also poised to secure better terms on a major contract to build three support ships for the Royal Navy, strengthening Britain’s maritime capabilities and providing a much-needed boost to the country’s shipbuilding sector.
This intervention comes after a period of prolonged uncertainty for Harland & Wolff. The company went into administration in September after mounting financial problems and an inability to secure long-term financing. Harland & Wolff’s efforts to straighten out its finances included multiple loans from U.S. lender Riverstone totaling about $200 million, but the shipbuilder continued to struggle with debt and fierce global competition.
In 2019, the Belfast-based company was previously rescued from administration by London energy company Infrastrata. Despite winning the Royal Navy contract in partnership with Navantia in 2022, the company was unable to keep pace with bigger rivals and faced increasing debt repayments.
The government’s decision to reject a requested £200 million loan guarantee earlier this year left Harland & Wolff in a precarious position. Business Minister Jonathan Reynolds emphasized that “the market is best placed to resolve the commercial issues,” prompting the shipbuilder to pursue private sector solutions rather than relying on public funds.
Founded in 1861, Harland & Wolff’s portfolio includes the iconic RMS Titanic and other renowned ships built for White Star Line. If the latest deal is completed, this historic name will survive the current upheavals in global shipbuilding and forge a new future under the ownership of Navantia – a company that employs almost 4,000 people in its home country and enjoys strong government support.
Both the UK Department of Trade and Commerce and Navantia declined to comment ahead of the deal’s official completion. As the UK shipbuilding industry faces changing demands and fierce international competition, this high-profile rescue deal could mark a turning point, ensuring Harland & Wolff’s legacy continues to shape the future of British maritime engineering.