Around 180 jobs have been guaranteed for two years at a Fife shipyard after a deal to buy debt-laden Harland and Wolff was officially confirmed.
Spanish state-owned engineering firm Navantia will buy all four Harland & Wolff sites, including Methil and Arnish, it was announced on Thursday.
As part of the deal, Navantia had to promise 90% of the workforce at the Fife site would have their jobs and conditions protected for up to two years.
There are around 200 members of staff currently employed at the Methil yard, which has supported generations of families in the area with skilled work.
Scottish Secretary Ian Murray visited the docks on Thursday.
He said the “work pipeline” was now in place which could lead not just to jobs being saved, but “hundreds” more being created.
Navantia deal for Methil yard
Speculation on Methil yard’s future had grown since September, after Harland and Wolff was placed in administration with debts of around £160 million.
The exact sum paid by Navantia for the four shipyards has not been disclosed, but it is understood to stand at close to £70m.
Ministers refused a loan plea from Harland and Wolff after it was forced into a restructure, maintaining a “market solution” was the best way to secure the yards’ future.
GMB warns of ‘squander’
While the news was broadly welcomed by unions, GMB warned the recent history of Methil yard has been one of squander.
The union wants the engineering excellence on offer in Methil to turn the site into one that thrives, rather than one that merely “survives”.
GMB Scotland secretary Louise Gilmour, said: “The priority now is to ensure the future of these yards is not just secure but sustainable.
“The workforce in Scotland has endured too many false dawns and deserves certainty, investment and detailed plans.
“These yards are full of engineering excellence, experience and potential and should be thriving not just surviving.
“If operations like this do not have a long-term, profitable place in Scotland’s industrial landscape, supporting good jobs and local communities, then Scotland is doing something very wrong.
“The recent history of these yards has been one of squandered opportunities and that must end.”
‘Early Christmas present’
Secretary of State for Scotland Ian Murray told The Courier: “It is the best Christmas present the workforce here could have got.
“It is great for Methil, great for Fife and the whole of Scotland.
“Because of the world class workforce and potential here, it was not a difficult sell for Navantia.
“The workers I have spoken with here are very excited to show what they can do.
“We said there would be a market solution (to securing the four yards). Navantia is a private company which is partly owned by the Spanish government.
“We could not justify the export guarantee the yards wanted and that was the right thing to do at the time.
“The Scotland Office worked very closely with the Department of Trade to make sure all four yards stayed together with that market solution, and this is the one that comes today.
“The potential for this yard is huge. And hopefully today (Thursday) is the starting point of realising that.
“There were two large policy specifications, from the Scotland Office point of view, was that the yards stayed together and the workforce was protected. And 90% of the workforce is now protected for two years.
“But it is not about the minimum, it is now about the potential and the upskilling of people and how many will need to work here to fulfil the potential of Methil yard.
“It’s not just been about saving that 90%, but how we build on that number and how many hundreds we can get in here.
“Methil is a fantastic yard to look at fabrication and a fantastic yard to look at off-shore wind. We need to make sure we have all of these things working together.
“And we could end up in a situation in 18 months time where there’s a capacity issue, rather than a work issue. So the pipeline of work is there, the potential is there, and the workforce here is delighted about the announcement and very keen to get on and show what they can do.”
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