MercoPress. South Atlantic News Agency

Spanish shipbuilder expected to announce it is taking over Harland and Wolff

Navantia, is 100% owned by Spain's government, and has been a significant recipient of funding from the European Commission as part of the European Defense Fund.

A Spanish state-owned shipbuilder is expected to confirm this Thursday that it is buying Harland and Wolff, the Belfast shipyard best known for having built the Titanic. Harland and Wolff was once mentioned as a possible builder of the Falkland Islands new port terminal, the largest Islands’ capital investment.

According to BBC, Navantia has been in exclusive negotiations since October after Harland and Wolff's holding company fell into administration. All jobs at the firm are expected to be saved in the deal, which is also thought to include Harland and Wolff's facilities in Scotland and England. An announcement is also expected to be made in parliament on Thursday, points out the BBC piece.

The British government may announce that it is improving the terms of that deal to reflect increased costs. The agreement is to be presented as early fruits of the government's post Brexit “reset”.

Navantia, which is 100% owned by Spain's government, has been a significant recipient of funding from the European Commission as part of the European Defense Fund. Joining the fund is a possible objective for the UK-EU security reset, set to be discussed at a summit early in the New Year.

The Spanish economy minister responsible for its state-owned businesses, Carlos Cuerpo, met with Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds in London last month.

Navantia already has a 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 and Wolff acting as UK subcontractor.

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).