Harland and Wolff in talks with Spanish shipbuilder

Spanish state-owned shipyard Navantia is in exclusive talks to acquire the Harland and Wolff shipyard in Belfast.

Harland and Wolff, best known for building the Titanic, also had operations in Appledore, England, and Mayhill and Anish, Scotland.

Navantia already has an established business relationship with Harland and Wolff.

It is the main contractor on a project to build three support ships for the Royal Navy, with Harland & Wolff acting as subcontractor.

Exclusive talks are first reported The Sunday Telegraph reports that the deal covering all four yards could be completed by the end of November.

Last month Haaland and Wolff Holdings Inc. stuck in administration While independent operating companies running shipyards continue to trade.

Russell Downs, executive chairman of Harland & Wolff, said: “The core activities of the group’s four shipyards will continue with the support of all stakeholders and we will provide an update on the strategic process in due course.”

Mr Downs, a restructuring specialist, has been running the company since August.

He was appointed after previous management failed to persuade the government to provide a £200m loan guarantee to the company.

Mr Downes has been working with Rothschild Bank to find a new owner capable of investing in the business as the naval contract expands.

Founded in 1861 by Yorkshireman Edward Harland and his German business partner Gustav Wolff, Belfast Dockyard is best known for building the Titanic.

By the early 20th century, Harland and Wolff dominated the global shipbuilding industry and became the world’s most prolific builder of ocean liners.

However, since the Second World War it has been plunged into crisis after crisis and was under British state control from 1977 to 1989.

In 2019, the then-Norwegian owner withdrew financial support and the company fell into bankruptcy and has not built a ship in a generation.

It was acquired by Infrastrata, a small London-based energy company that did not have extensive experience in marine engineering.

Infrastrata later changed its name to Harland and Wolff and in 2022 won a major Royal Navy contract as part of a Navantia-led consortium.

However, as the business expanded, financial losses continued to mount and it became increasingly dependent on high-interest borrowings from Riverstone, a specialist US lender.

Navantia’s main shipyard is located in Cadiz, southern Spain.

The company employs more than 4,000 people and has an annual turnover of approximately €1.3 billion (£835 million).