Shipbuilder Harland and Wolff, famously known for constructing the Titanic over a century ago, has revealed plans to enter administration. The company anticipates around 50-60 immediate job losses but assures that employees at its four shipyards will not be affected. Harland and Wolff operates shipyards in Belfast, Scotland (Methil and Arnish), and England (Appledore). This marks the second time in five years that the company has faced administration. The administration process primarily involves the holding company, Harland & Wolff Group Holdings PLC, while the operational yards are expected to continue operations.
Insolvency practitioners Teneo will oversee the administration process, leading to the delisting of shares. Despite securing a contract to build support ships for the Royal Navy, Harland and Wolff’s request for a £200 million loan guarantee from the Government was not granted. Interim executive chairman, Russell Downs, acknowledged the challenging period due to historic losses and financing setbacks. He emphasized the commitment to supporting staff through the transition and striving for the continued operation of the yards under new ownership.
Downs expressed optimism in the shipyards’ capabilities and the potential for sustained shipbuilding and renewable energy projects, employing over 1,300 personnel. The company aims to navigate through its financial difficulties to uphold a legacy benefiting the UK and its communities. Downs highlighted the necessity of making tough decisions to secure the future of the yards. The board’s focus remains on delivering optimal outcomes for all stakeholders involved, ensuring the yards’ sustainability in the long term.
The announcement regarding Harland and Wolff’s administration signals a pivotal moment for the renowned shipbuilding company. With a rich history and a workforce dedicated to preserving its legacy, the future of the shipyards remains uncertain yet hopeful under new ownership.