Navantia strikes deal to buy Titanic shipbuilder Harland & Wolff

Historic shipyard owner Harland & Wolff is to be acquired out of administration by Spain’s Navantia, it was confirmed on Thursday, saving 1,000 jobs.

The state-owned defence firm has agreed to buy H&W’s four shipyards in Scotland, Devon and Belfast - where the Titanic was built - and preserve all jobs.

In return, it has been offered amended terms on a £1.6bn contract to build three Royal Navy support ships. The vessels, which will be built at H&W yards in Belfast and Devon as well as Navantia’s main site in Cadiz, will be used to transport supplies to aircraft carriers.

Financial terms were not disclosed, however.

The government said it had worked closely with Navantia to secure the sale, which remains subject to regulatory approval.

Jonathan Reynolds, business and trade secretary, 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.

"[It] will guarantee our sovereign shipbuilding capability to bolster our Navy and ensure the industry can continue to deliver economic growth and boost coastal communities across the UK."

H&W went into administration in September after the government refused to provide a £200m loan guarantee. Its parent company was listed on AIM and had its shares suspended just ahead of the general election in July.

Unite, the union, welcomed the deal, saying it offered "real hope" for the future.