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Jobs blow as Titanic shipbuilder Harland and Wolff set to go into administration

It had applied for a 200m loan guarantee from the Government as part of efforts to restructure its finances

[Huge cranes at the Harland and Wolff shipyard in Belfast with snow covering the area]

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The main Harland and Wolff shipyard is in Belfast (Image: PA Archive/PA Images)

Harland and Wolff, the iconic shipbuilder which build the Titanic, is headed for administration once again, throwing its future into uncertainty.

The company disclosed that initially, 50 to 60 jobs are expected to be lost, however, clarified that none of its employees at the four shipyards which include one in Belfast, two in Scotland (Methil on the Firth of Forth and Arnish on the Isle of Lewis) and one in Appledore, North Devon, England would be impacted by these redundancies.

Known for its historic influence on maritime construction, Harland and Wolff has shipyards with storied pasts and robust operations. It is the second time the business has been placed in administration in five years.

The administration process will be confined to the holding company, Harland & Wolff Group Holdings PLC, and the operational companies which run the yards are expected to continue trading. A statement from the company said: "A full review of all group holdings commenced in July and has concluded that H&W Group Holdings PLC is insolvent on a balance sheet basis as per its last audited accounts and most recent management accounts."

Teneo, serving as insolvency practitioners, will administer the process, resulting in the company's shares being delisted. The company is part of a consortium awarded a contract for constructing fleet solid support ships for the Royal Navy.

The company had applied for a 200m loan guarantee from the Government to reorganize its finances, only to be denied government backing as well as direct monetary support to preserve liquidity in August. Russell Downs, Harland and Wolff's interim executive chairman, has described the period as a "very challenging time" for the group, following historic losses and the inability to secure long-term financing.

He said: "It's important to recognise that this is very difficult news for staff and will affect many within the group. We will work to support our staff through this transition. We also know that it will be very unwelcome news for shareholders who have shown significant commitment to the business over the last five years."

"The board, the senior managers and rest of the team are committed to deliver the best outcome for the four yards and communities they serve to ensure their continued operation into the long term under new ownership. Unfortunately, extremely difficult decisions have had to be taken to preserve the future of our yards."

"Despite the recent challenges, the four yards have a strong capability, under new ownership and with the continuing support of their customers, to deliver UK-based shipbuilding and leading UK-based renewables employing over 1,300 committed personnel. It's critical that the business comes through its financial troubles to secure an enduring legacy worthy of its name and its past for the benefit of the UK as a whole and its communities in particular."

A Government spokesperson said: While we know this will be a concerning time for those affected, Harland and Wolff has been clear this process will in no way affect jobs at its shipyards or core operations such as delivering its contracts for the Ministry of Defence.

We are clear that following a thorough review of the companys financial situation, at present the market is best-placed to address these challenges, and providing Government funding would have meant a significant risk of losing taxpayer money. We are continuing to work extensively with all parties to find an outcome for Harland and Wolff that delivers shipbuilding and manufacturing in Belfast, Scotland and across the rest of the UK and protects jobs.

Ulster Unionist MLA Andy Allen emphasized the importance of government support in securing a new owner for the shipyard. He said: "While this outcome may have seemed increasingly likely in recent months, we must find a solution that not only keeps this historic shipyard in east Belfast, but allows it to grow and thrive."

"The yard is more than just a historic landmark; it has a vital role to play in our national defence, particularly in shipbuilding and maintenance. Given its strategic importance to our defence infrastructure, the Government must act quickly and decisively to secure its future."

"The workforce's skills and expertise are invaluable, not just to the yard itself but to our broader economy and defence capabilities. I will continue to work with colleagues, both here and in Westminster, to ensure every support is given to finding a new owner that will make a clear commitment to building on Harland and Wolff's historic success."

"The Government must actively engage with all interested parties and prioritise this issue. We must ensure the yard and its workforce have a viable and sustainable future."

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