Northern Ireland’s Harland & Wolff Secured in Last-Minute Spanish Rescue Deal

This article reports on the takeover of Harland and Wolff, a historic shipbuilding company in Belfast, Northern Ireland, by Navantia, Spain’s national shipbuilder. Here are the key points:

History of Harland and Wolff

• Founded in 1861 by Edward Harland and Gustav Wolff

• Dominated global shipbuilding and built many ocean liners in the early 20th century

• Has lurched from crisis to crisis since World War Two, including being under UK state control from 1977 to 1989

• Fell into insolvency in 2019 after its Norwegian owners withdrew financial support

Recent Developments

• Bought by InfraStrata, a small London-based energy firm with no significant experience in marine engineering, which later changed its name to Harland & Wolff

• Won a Royal Navy contract as part of a consortium led by Navantia in 2022

• Suffered financial losses and became reliant on high-interest borrowings from Riverstone, a specialist US lender

• Sought a £200m government loan guarantee but was rejected due to being too risky for taxpayers

• Entered administration in September and restructuring expert Russell Downs was appointed to find a new owner

Takeover by Navantia

• Navantia, 100% owned by Spain’s government, has acquired Harland & Wolff

• Has a business relationship with Harland & Wolff on the Royal Navy contract

• Employes over 4,000 people and has an annual turnover of about €1.3bn (£835m)

Impact on Belfast

• The takeover is seen as good news for Belfast, particularly the east of the city where the shipyard is located

• The Harland & Wolff cranes are iconic landmarks in Belfast and have a special significance for locals

• The company’s workforce will be saved by the takeover, with around 1,000 jobs set to be preserved.

Overall, the takeover of Harland & Wolff by Navantia is seen as a positive development for the company and its employees, but may also raise concerns about the impact on UK industry and the potential implications for Brexit.