Spanish firm pushes for better terms in deal to rescue shipyards

A Spanish state-owned shipbuilder is reportedly pressing the UK government for improved terms on a deal to supply the Royal Navy with three vessels, in talks that could prove key to rescuing the Belfast shipyard that built the Titanic.

- Rob Davies

Navantia, owned by the Spanish government, is poised to buy Harland & Wolff (H&W) in a deal that could save up to 1,000 jobs. Talks have been taking place since H&W sank into administration last month. Navantia is understood to be trying to secure a better deal on its contract to build three Fleet Solid Support (FSS) ships, which supply navy vessels with dry goods such as food.

The fate of 1,000 workers at four UK shipyards could rest on the Ministry of Defence agreeing to more "realistic terms", a source close to the Spanish company told Sky News, which first reported the story. The MoD received a 2.3% spending increase in last week's budget.