Belfast was celebrating last night after winning contracts for two Ministry of Defence ferries.
The multimillion pound order was literally a lifesaver for the yard, which has been teetering on the brink of closure for much of the year. With a virtually empty order book, it could have faced closure in the new year had it not secured the order.
Harland & Wolff chief executive Mr Brynjulv Mugaas welcomed the order, which he said would be a "tremendous boost, not only for our employees who have experienced such difficult times recently, but for all those with an interest in Harland & Wolff".
It will secure the jobs of the 600 workers left after major redundancies this year, including a halving of the workforce last month. He said that, subject to the finalisation of the contracts, design work would commence immediately.
Mr Blair said the announcement that two ferries would be built at the yard was a tremendous vote of confidence for the company and for shipbuilding in the UK.
He said the order had been won because of the strength of the workforce and their dedication and commitment through the most difficult times.
Northern Ireland First Minister David Trimble and Deputy First Minister Seamus Mallon are known to have raised the plight of the shipyard with Mr Blair's office in recent weeks.
Mr Trimble said the order was "excellent news for both Harland & Wolff and their workforce" after several difficult months.
"I welcome the safeguarding of jobs that this announcement brings and I hope that this will be the start of a process of renewal for this important sector of our manufacturing industry," he said.
The announcement came only the day after the shipyard reported third-quarter losses of £11.1 million sterling (#19.2 million) which dragged its Norwegian major shareholder, Fred Olsen Energy, into the red.
One-off costs associated with the last 600 redundancies in September saw Olsen post an overall loss of £1.58 million, compared with break-even in the second quarter and a profit of £5.73 million in the corresponding period in 1999. The Norwegian company said it would continue to finance Harland & Wolff until the end of January when it expected it to be breaking even.
Even with the new order the yard faces a lean time - it will be some six to nine months before steel cutting can begin following the design work. The only work it is currently engaged in is a refit of two oil rigs sent to Belfast by Fred Olsen Energy.
