The immediate future of a Fife yard has been secured after a deal to buy the site from debt-stricken Harland and Wolff by Spanish firm Navantia was agreed.
A deal is expected to be finalised on Thursday which will see all four UK yards, including Methil and Arnish on the Isle of Lewis, come under new ownership.
The Methil yard employs around 200 staff.
Glenrothes Labour MP Richard Baker called the buy-out a “huge victory” for workers, with it understood job guarantees for the Fife yard have been given, Sky News reports.
Harland and Wolff, who are known globally as the company which built the Titanic, collapsed into administration earlier this year with reported debts of £160 million.
Earlier this year, the Labour government refused to publicly bail the company out, due to “a very substantial risk that taxpayer money would be lost”.
Navantia is expected to pay around £70m for Harland and Wolff’s assets.
They will also benefit from improved terms on a government contract to build three Fleet Solid Support vessels for the Royal Navy.
Union warns of ‘doom loop’
GMB national officer Matt Roberts welcomed the announcement, but promised to continue holding the government and Navantia’s “feet to the fire”.
He 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.”
Expected deal for Methil yard ‘huge victory’
Glenrothes and Mid Fife MP Richard Baker said the agreement showed the UK government was “delivering for Fife”.
“This expected deal is a huge victory for the workers, local management and everyone who has fought so hard for the future of the Methil Yard,” he said.
“I’m incredibly grateful to my colleagues in government who recognised the sale of Harland and Wolff had to include Methil along with the other yards.
“This shows the new Labour government is delivering for Fife and investing in the future of our local communities.
“Without this commitment the outcome could have been very different.
“When I was elected it was clear the refusal of the last Tory Government to take the action required to ensure the yards had a sustainable future had left Methil in a precarious position.
“Since then, I have worked every day alongside all those fighting for the future of the yard and its skilled workforce to secure a successful outcome.
“The Navantia deal is almost secured but the key issue for me as the local MP is we now need an ongoing commitment and workable plan by all key stakeholders and all levels of government to ensure a lasting future for the yard.
“These workers have faced too much anxiety in recent years.
“With GB Energy headquartered in Scotland, the 200 skilled jobs and apprenticeships at Methil and the expertise of the workforce are crucial in our mission to turn Scotland and the UK into a clean energy superpower.”
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