Hundreds of Scottish jobs have been saved after a deal was struck to save troubled shipbuilder Harland and Wolff. Spanish state-owned business Navantia has stepped in to buy the firm.
The Belfast-based company – which has yards at Methil in Fife and Arnish on the Isle of Lewis – was placed into administration in September for the second time in five years.
Titanic builder Harland and Wolff is a subcontractor in part of a consortium that landed a major contract to build new fleet solid support ships for the Royal Navy. Navantia UK is the main contractor on that contract.
The deal, which is subject to regulatory approval, will secure 1,000 jobs at Harland and Wolff’s four shipyards. This includes almost 400 jobs at the two Scottish sites. The purchase agreement is set to protect workers’ existing terms and conditions.
The Government has also agreed to amend the Fleet Solid Support (FSS) Programme contract with Navantia to ensure the company can “still deliver on the contract and build all three Navy ships”.
Labour’s Western Isles MP Torcuil Crichton said: “This is the best Christmas present that the Arnish workforce and the Isle of Lewis could have. There are over 150 jobs at the yard, from apprentices to journeymen, and losing those jobs and that wage bill would have been a major blow to the economy.
“There should be no doubt, it is a Labour government that kept the lights on at Arnish.
“Jonathan Reynolds and Ian Murray at the Scotland Office pushed hard for Arnish and Methil in Fife to be part of the take-over package. Labour Ministers proved they are committed to an industrial strategy and to Scotland.”
“Hopefully, the deal which emerged will secure jobs at Arnish. The collapse of Harland and Wolff was a big bump in the road, there will be others to come, but for now the yard and the jobs seem safe.”
“That’s a major achievement and that is down to having a Labour government and Labour Ministers committed to the islands and to people.”
Scottish Secretary Ian Murray today visited Harland and Wolff’s site at Methil to meet with management, workers and trades unions. Ahead of his visit, he said:
“This deal will save hundreds of skilled Scottish jobs, bringing a vital lifeline to communities on Lewis and in Methil. Navantia’s investment will not only secure the future of all four UK yards, but also encourage future support for UK shipbuilding and fabrication – a vital cornerstone of our defence and clean energy sectors.
“Our Plan for Change is fixing the foundations as we face up to the worst economic and industrial inheritance since the Second World War. But through our Industrial Strategy, and by helping facilitate deals like this one, we are breathing new life into key sectors, sustaining skilled jobs and delivering long-term economic growth to improve living standards right across the UK.
“Scotland has a proud industrial past. Today, the workers of Fife and Lewis can look forward to a bright industrial future.”
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