Pressmediaofindia
Related Articles
20-12-2024
MADRID: Spain’s state-owned shipbuilder is expected to confirm on Thursday that it is buying Harland and Wolff, the Belfast shipyard best known for Titanic.
Navantia has been in exclusive negotiations since October after Harland and Wolff’s holding company fell into administration.
The deal is also expected to include Harland and Wolff’s facilities in Scotland and England.
Navantia already has a business relationship with the company.
It is the main contractor on a project to build three support ships for the Royal Navy with Harland and Wolff acting as UK subcontractor.
The government may announce that it is improving the terms of that deal to reflect increased costs.
The company employs a core staff of about 1,200 in Belfast, Appledore in England and Methil and Arnish in Scotland.
Navantia’s main shipyard is at Cadiz in southern Spain.
It employs more than 4,000 people and has an annual turnover of about €1.3bn (£835m).
Harland and Wolff was founded in 1861 by Yorkshireman Edward Harland and his German business partner, Gustav Wolff.
By the early 20th Century, Harland and Wolff dominated global shipbuilding and had become the most prolific builder of ocean liners in the world.
However, in the period since World War Two it has lurched from crisis to crisis and was under UK state control from 1977 to 1989.
In 2019, its then Norwegian owners withdrew financial support and the business fell into insolvency, having not built a ship in a generation.
It was bought by Infrastrata, a small London-based energy firm which did not have significant experience in marine engineering.
Infrastrata later changed its name to Harland and Wolff and in 2022 won the Royal Navy contract as part of a consortium led by Navantia.
However, financial losses mounted as it scaled up its operations and it became increasingly reliant on high-interest borrowings from a specialist US lender, Riverstone.
The company sought a £200m government loan guarantee to refinance its borrowings but that was rejected for being too risky for taxpayers.
Its holding company entered administration in September and restructuring expert Russell Downs was appointed to run the business and find a new owner.
Shipbuilding Company Harland and Wolff has confirmed the business is to be placed into administration for the second time in five years.
Insolvency practitioners Teneo are being lined up to act as administrators and some “non-core” staff are being made redundant.
However, the company’s board said there was a “credible pathway” for its four shipyards to continue trading under new ownership.
Its main yard is in Belfast, best known for building the Titanic, with other operations at Appledore in England and Methil and Arnish in Scotland.
The company said the administration process would be confined to the holding company, Harland & Wolff Group Holdings plc, and the operational companies which run the yards are expected to continue trading.
However, shareholders will see the value of their investments in the business entirely wiped out.
The firm said its non-core operations are being wound down.
That process had already started with the closure of its Scilly Isles ferry service before sailing had even begun. (Int’l News Desk)
