Belfast shipbuilder Harland and Wolff enters administration

Belfast shipbuilder Harland and Wolff has announced the business is set to move into administration.

Harland and Wolff interim executive chairman Russell Downs said the group had faced a “very challenging time” due to historic losses and failure to secure long-term financing.

The move affects around 50 to 60 staff. It is understood staff affected are in administration.

It has four sites. One in Belfast as well as yards at Appledore in Devon, and at Methil and Arnish in Scotland. It employs over 1,300 people in total.A recent bid to the government for £200million in financial support had failed and it had recently lost out on a major contract in the Falklands where it had been named as the preferred bidder.

It is thought a number of firms are interested in its business as the company holds a Royal Navy contract.

The company said in a statement it is insolvent and administrators had been appointed.A company statement 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.”Insolvency practitioners Teneo will act as administrators and shares will be delisted.The company said between 50-60 immediate redundancies are expected but that staff employed at its four shipyards are not affected.

Harland and Wolff interim executive chairman Russell Downs added: "It’s important to recognise that this is very difficult news for staff and will affect many within 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 ship building 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.”

Historic ship builders

Harland & Wolff was founded in 1861. The company's headquarters are in London but it operates a number of sites across the UK, the largest of which is in Belfast.

It is famous for having built a number of ocean liners including the RMS Olympic and the RMS Titanic, which tragically sank on its maiden voyage in April 1912.

The Belfast shipyard is also known for its twin gantry cranes Samson and Goliath, built in 1974 and 1969, which loom large over the city's skyline.

Until recently, the last ship to be built at the yard was MV Anvil Point, which launched in 2003 and was built for use by the Ministry of Defence.

The company was put for sale in 2018 amid a difficult business environment and it faced uncertainty when it was placed into administration the following year.

However its future was secured after it was acquired by InfraStrata for £6m.

The Belfast shipyard completed its first vessel in over 20 years when it delivered a barge for the waste management firm Cory in 2023.

It was also awarded a £1.6bn contract to deliver three naval support ships for the Royal Fleet Auxiliary, with work due to begin in 2025.

The GMB union called for action from the Government following the announcement that Harland and Wolff would move into administration.

“Workers, their families and whole communities now face their lives being thrown into chaos due to chronic failures in industrial strategy and corporate mismanagement," said Matt Roberts.

“All the four Harland & Wolff yards are needed for our future sovereign capabilities in sectors like renewables and shipbuilding.

“The Government must now act to ensure no private company is allowed to cherry pick what parts are retained, in terms of which yards or contracts they wish to save.

"Leaving these vital yards - and the crucial FSS contract with all its promises for UK shipbuilding - to the mercy of the market is not good enough. The Government must provide support and oversight to get the market to the solution we need."

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