Harland & Wolff Shipyard’s Future in Doubt After $25 Million Bailout and Spanish Takeover Deal

The future of the historic Harland & Wolff shipyard is uncertain after it secured a $25 million emergency bailout, with concerns mounting that the UK’s Royal Navy vessels could soon be built abroad. Harland & Wolff, the iconic shipbuilder known for constructing the Titanic, is negotiating a £70 million rescue deal with Spanish state-owned company Navantia.

The proposed agreement, which has the backing of the British government, is expected to preserve over 1,000 jobs across the shipyard’s four UK locations: Belfast, Methil, Arnish, and Appledore. Navantia’s board is set to approve the takeover in the coming days, following months of talks. If finalized, Navantia will take control of all Harland & Wolff’s operations, committing to retaining the current workforce for a specified period, thus securing both jobs and the shipyards’ future.

The deal also includes a crucial contract for Navantia, with the Spanish firm expected to secure more favorable terms on a key agreement to build three support ships for the Royal Navy. This move would help strengthen the UK’s naval capabilities and provide a significant boost to the country’s shipbuilding sector, which has faced increasing competition from larger global players.

Harland & Wolff’s path to this point has been fraught with financial difficulties. The company entered administration in September due to mounting debt and an inability to secure long-term funding. Despite receiving loans totaling around $200 million from American lender Riverstone, the shipbuilder struggled to keep up with its competitors. In 2019, Harland & Wolff was rescued from administration by London-based energy company Infrastrata, but its financial woes persisted, despite securing a Royal Navy contract with Navantia in 2022.

Earlier this year, the UK government rejected Harland & Wolff’s request for a £200 million loan guarantee, leaving the company in a precarious financial position. Business Secretary Jonathan Reynolds emphasized that “the market is best placed to resolve the commercial matters,” pushing the company to seek private sector solutions rather than rely on public funds.

Founded in 1861, Harland & Wolff’s legacy includes iconic vessels such as the RMS Titanic, and the proposed deal with Navantia is seen as vital to preserving the shipyard’s rich history. If the deal goes through, Harland & Wolff could continue its legacy under new ownership, with Navantia’s backing ensuring the survival of one of the UK’s most historically significant shipbuilders.

Neither the UK Department for Business and Trade nor Navantia has commented officially on the deal, which remains under negotiation.