Methil yard buy-out secures almost 200 jobs and hailed as turning point

The Harland & Wolff yard in Methil, where generations of men have worked, is part of a UK-Government backed deal which will see Spanish shipbuilding subsidiary, Navantia UK, buy out the Belfast-based company, securing the future of all four yards in the UK, including its two Scottish yards in Fife and Arnish in the Western Isles.

The deal saves the jobs of 350 skilled workers at the two sites after Harland & Wolff called in the administrators in September - just under 200 are employed in Fife.

Under the deal, Navantia will take over all of H&W's sites. The Spanish group is expected to pay about £70m for its assets, and also benefit from improved terms on a government contract to build three Fleet Solid Support vessels for the Royal Navy. In return, it is expected to provide guarantees that it will retain H&W's existing workforce for a specific period, though details of how long have yet to be confirmed.

News of the commercial deal, which is subject to regulatory approval, was given to staff this morning before they broke off for their festive holidays.

Scottish Secretary, Ian Murray, visited the yard to meet with workers, management and unions, and said the deal would put the yard back on an even keel after a turbulent few years.

He said: “I hope today draws a line - this yard has a world class workforce, and it has a brilliant future. That is great for Methil, great for Fife and great for Scotland.”

The Navantia UK deal secures the future of Harland & Wolff’s shipyards across the UK, and will ensure the delivery of the Ministry of Defence’s contract with the company to build three Royal Navy ships which will transport munitions, spares and supplies to UK aircraft carriers.

Mr Murray said it would also “encourage future support for UK shipbuilding and fabrication - a vital cornerstone of our defence and clean energy sectors.”

His tour took him round the yard after meeting with senior figures. He said: “This yard has got huge potential, and this deal secures 90% of its workforce for two years, but all the discussions haven’t been about the minimum - they are about the maximum and many multiples of the workforce they have at moment.

“Speaking to apprentices here, they are looking forward to the future, being upskilled and reskilled in terms of the energy and renewables sectors.

“I hope today draws line under its chequered history. It is here with as world class workforce -a and that made it very easy sell to Navantia, in terms of ensuring all four yards across UK stayed together. The potential is huge and they are really excited about trying to fulfil that.”

Navantia's board is expected to meet to ratify the deal in the next couple of days.

Richard Baker, MP for Glenrothes and Mid Fife, welcomed the news. He said the deal had been his priority since being elected earlier this year.

He said: “This expected deal will be a huge victory for the workers, local management and everyone who has fought so hard for the Methil yard.

The Navantia deal is almost secured, but the key issue for me is we now need an ongoing commitment and workable plan by all key stakeholders and all levels of government to ensure lasting stability for the yard.

“The 200 skilled workers and apprentices at Methil are vital for our local economy and our future in renewables. They have faced too much anxiety in recent years, but I believe we can now look forward to a brighter future.”

Matt Roberts, GMB national officer, said this week: “This is good news for UK sovereign capability and capacity in renewables and shipbuilding, but challenges remain.”