HomeJobsHarland & Wolff rescued as Spanish buyout protects 400 jobs in Scotland

Harland & Wolff rescued as Spanish buyout protects 400 jobs in Scotland

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The company operates two Scottish sites, at Arnish on the Isle of Lewis and Methil in Fife, and unions GMB and Unite warned that close to 400 jobs were at risk.

However, it was confirmed on Thursday that Spanish state-owned firm Navantia will step in and buy the ailing company.

The deal, which is subject to regulatory approval, will secure 1,000 jobs at Harland and Wolff’s four shipyards – one in Belfast, two in Scotland (Methil on the Firth of Forth and Arnish on the Isle of Lewis) and one in England (Appledore in north Devon).


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The purchase agreement is set to protect workers’ existing terms and conditions.

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 & 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.”

Harland & Wolff has been savedHarland & Wolff has been saved (Image: PA)

Mr Reynolds would not be drawn on how much extra taxpayers’ cash would be spent on the contract for Royal Navy support vessels to get a deal to support Harland and Wolff over the line.

He said the change to the deal was “relatively minor given the size of that contract, which is obviously a very important one for national security”.

He told reporters: “this is a huge vote of confidence in the UK. It is good for jobs, it’s good for national security, and it’s good for all parts of the UK. This was a huge problem that we inherited walking into office. We have been able to broker a solution that is not just a solution to the short-term problem, but one in the best long-term interests of the UK.”

Asked how much extra money would be spent on the vessels, he said: “There has been some change to the contract to deliver fleet solid support ships.

“It’s relatively minor along commercial terms, but it is a far better solution than what was on the table when we initially came into office, which would have been a loan guarantee, which I believe would have lost the taxpayer all of its money and not delivered those ships and not secured the yards or the jobs.

“So it’s been a cross-government effort to deliver this, but it’s good for the country, good for the workers, and, of course, good for the delivery of that contract.”

Louise Gilmour, GMB Scotland secretary, said: “The priority now is to ensure the future of these yards is not just secure but sustainable.

“The workforce in Scotland has endured too many false dawns and deserves certainty, investment and detailed plans.

“These yards are full of engineering excellence, experience and potential and should be thriving not just surviving.

“If operations like this do not have a long-term, profitable place in Scotland’s industrial landscape, supporting good jobs and local communities, then Scotland is doing something very wrong.

“The recent history of these yards has been one of squandered opportunities and that must end.

“We will now be seeking detailed discussions with management and governments on both sides of border to help forge a new way forward.”

Gilmour has written to the Scottish Secretary Ian Murray, deputy first minster Kate Forbes and UK government minister Sarah Jones to request discussions on how the Scottish yards, with a combined workforce of almost 400, can be supported in partnership with sister yards in Belfast and Devon.

Defence Secretary John Healey said: “This agreement keeps vital defence manufacturing in the UK and protects skilled jobs at historic shipyards across our nations.

“It strengthens our sovereign capability to support Royal Navy operations worldwide, while building the industrial partnerships that will drive growth.”

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