A crucial rescue deal for the Arnish yard in Lewis and its sister Harland and Wolff (H&W) facilities is expected to be secured soon.
Lengthy negotiations between Spain’s Navantia and the UK Government over a £70 million package to save the manufacturing bases appear close to final agreement.
An announcement may be revealed by the weekend or even later today if the Spanish firm’s board of directors give approval.
Since Harland and Wolff’s parent company entered administration in September Navantia
has been providing emergency cash flow assistance to allow the four yards - Arnish,
Methil, Belfast and Appledore - to continue operating.
Months of uncertainty shadowed the Arnish yard with fears it may be left out in the cold if Navantia preferred to focus on the much larger Belfast facility.
The Spanish state-owned shipbuilder is unlikely to purchase H&W as a going concern.
Instead, talks centre around Navantia acquiring assets and taking over all the manufacturing sites.
Navantia currently collaborates with H&W over sharing forthcoming construction of three ships for the Royal Fleet Auxiliary (RFA) which supplies food, ammunition, and replenishing services at sea to the Royal Navy fleet.
Enhancing the financial value of the RFA ships contract to Navantia is expected to be agreed by the UK Government if the Spanish firm’s board of directors proceed with the takeover proposal.
Retaining the 1,000 jobs across the four sites is a crunch element of negotiations it is understood.
GMB Union, the union for shipbuilders, responded to the potential deal to save Harland and Wolff.
Matt Roberts, GMB National Officer, said: “This is good news for UK sovereign capability and capacity in renewables and shipbuilding, but challenges remain.
“GMB campaigned long and hard for all four Harland and Wolff yards to be included
in any sale - so the fact they have all been saved, with the promise of all jobs
retained and new jobs created is very welcome.
“However without proper investment into local skills and facilities at all four yards, and the onshoring of orders, the doom loop will be in danger of coming back.
“GMB will hold both Navantia and the Government’s feet to the fire to ensure promises are kept.”
The Arnish yard in Lewis was not immediately affected by the parent firm’s financial collapse as it operates under an active separate subsidiary company. The other three yards are run on similar lines.
Administration was restricted to parent company, Harland & Wolff Group Holdings PLC
which specialises in shipbuilding, ship repair and marine engineering. It is a non-trading
holding company and is the only entity to which administrators have been appointed.
In its final statement, the parent firm said Arnish operates under the control of its own directors. The yard which employs around 145 people continues to trade while it is offered for sale.
Rothschild and Co were engaged in July to assess strategic options for the company and its subsidiaries.
Doubts intensified over H&W’s future after the incoming Labour government rejected a rescue deal soon after coming into power.
A £200 million government guarantee lifeline was refused and a request for an £20 million emergency loan to keep afloat was also ruled out.
Spanish company close to becoming new operators of Arnish yard
19 December 2024