Harland & Wolf owns the shipyard in Belfast where the Titanic was built. Photo: David Cordner
Government hopes to increase sales of British-made ships with £500m loan guarantees.
The Department of Trade has agreed to stay in place for borrowers who want to use the funds to buy a British ship, a policy the company hopes will give a boost to struggling UK shipyards.
While shipbuilders in the defense sector are being helped long-term orders from the Royal Navy, civilian manufacturers struggle to compete with cheaper overseas shipyards.
Likely beneficiaries of the new government scheme include Harland & Wolf, owner of the historic Belfast shipyard where the Titanic was built; Cammell Laird, who built the polar research vessel that narrowly escaped the Boaty McBoatface moniker; and Wight Shipyard, building the Thames Clipper commuter ships.
The loan guarantee is part of Britain's national shipbuilding strategy, authored by industrialist Sir John Parker.
The paper proposes that more UK shipyards be commissioned to break the dominance of the navy's leading supplier, BAE Systems. He called for a “regular drumbeat” of work to keep the shipyards running.
Harland & Wolff won part of a contract to build supply ships for the Royal Navy last year but warned that a lack of parts had delayed some work and a £5m contract for four wind turbine casings was cancelled.
B The shipyard lost £70m last year despite rising sales, highlighting the financial challenges facing the industry.
Wight Shipyard lost £1.7m in 2021 and Cammel Laird lost £4.5m, according to the latest figures. .
John Wood, Harland & Wolff CEO said: “This scheme will help UK shipbuilders compete, secure orders and create new high quality jobs across the country. We look forward to using this scheme as both a customer and a builder.”
The industry is estimated to support 46,000 jobs and £2.4bn a year.
Industry and Economic Security Minister Nusrat Ghani said: “Shipbuilding is an integral part of the UK's industrial identity and through this scheme we are supporting our large maritime businesses to stay ahead of the competition.”
“Designed advanced vessels and built here in the UK, it will be a career boost for highly skilled professionals and every company involved in the shipbuilding supply chain, helping us grow the economy.”
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