A Spanish shipbuilding firm is in ‘exclusive negotiations’ to buy Harland and Wolff, the Sunday Telegraph has reported.
Navantia, a company dedicated to civil and military naval construction, is purportedly close to confirming a deal with the owner of Belfast shipyard, in a deal that could rescue up to 1,000 jobs.
The firm already had a £1.6bn contract with H&W, in which the latter is to to build three fleet solid support (FSS) ships that transport crucial supplies to aircraft carriers for the Royal Fleet Auxiliary, the civilian branch of the Royal Navy.
Harland and Wolff announced last month that its parent company would enter administration, putting this contract in doubt.
It is the second time in five years the famous shipyard tat built the Titanic has announced administration.
The administration only applies to the holding company, and not to the group’s subsidiaries.
It added that redundancies are anticipated for staff who work for the parent entity – around 59 employees.
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H&W operate four sites, in Belfast; Appledore, Devon; Arnish on the Isle of Lewis; and Methil, Fife
It is now understood that Navantia could take control of the group’s four yards as early as next month.
A deal is not expected to involve a prepack administration of the operating companies that run the yards, which could put jobs at risk.
Sources said Navantia was examining a number of options to protect their original contract, including a buyout, and it was not yet clear which would go ahead.
Administrators for Harland & Wolff’s main company are understood to want to secure a deal for its yards as quickly as possible so they can confirm and win new contracts.
Harland and Wolff’s future has seemed shaky since the British government refused to guarantee them a £200m loan from UK Export Finance earlier in the summer, something the company says left it “in a difficult financial position”.
The business secretary, Jonathan Reynolds, in August ruled out giving the loan guarantee, which had been announced by the previous Conservative government.
Yet, Mr Reynolds also made it clear in July that he was confident that Royal Navy ships would be built in Belfast.