Harland & Wolff has secured a £300 million sterling (A5 million) contract to build four passenger vessels for a Bahamas-based company, Seamasters International.
The deal is expected to secure the medium-term future of some 1,000 shipbuilding jobs at the yard until early 2004.
The deal is subject to Harland & Wolff gaining the correct level of intervention aid, financing and guarantees from the British govenment and other parties.
This was an element which caused problems in preparing the yard's failed Queen Mary II bid.
But on Radio Ulster yesterday, Harland & Wolff chief executive Mr Brynjluv Mugaas said the difference now was it had the contract secured and it should be possible to fulfil the requirements. He said the contract could be a good basis for the future of the yard.
The contract is to design and construct four sophisticated Ropax (roll-on roll-off passenger vessels), to be known as the Atlantic 4000 class.
These vessels are expected to be 15-20 per cent more fuel efficient than competing designs by virtue of reduced steelweight and new hull lines.
There is an option for two further vessels, which would bring the value of the contract to £500 million sterling.
The first vessel is scheduled to enter service in mid-2002 with subsequent deliveries phased until early 2004.
The Norwegian shipbroking company, O-J Libaek & Partners, acted as intermediary in the contract.
Work is not due to start on the contract until the end of the year and the yard is pursuing several other contracts to fill the gap between then and now.
Short-time working and redundancies are possible if these are not secured.
The contract was signed just one day after a crucial meeting of the workforce voted narrowly in favour of a management deal on terms and conditions of employment.
Mr Mugaas confirmed yesterday that the workforce involved in shipbuilding would be reduced to 1,000, a loss of some 300 jobs at the yard.
He said this would be necessary to ensure the required level of economic competitiveness.
However, he said the immediate threat of redundancy, which was issued almost two months ago to the 1,800 workforce of Harland & Wolff, could not be lifted until all the details of the contract were finalised. News of the contract was welcomed by the Secretary of State for Northern Ireland, Mr Peter Mandelson. He said it was a good day for all the people of Northern Ireland.
The Minister for Regional Development in the stalled Northern Assembly, Mr Peter Robinson, said he was delighted at the news of the order but added: "While management were to be congratulated for landing the order much of the sacrifice that went into securing it came from the men themselves, accepting terms less than they deserve."
East Belfast Alliance councillor, Mr David Alderdice, said there would be many families in East Belfast who will now have more certainty about their future.
