There’s a ‘credible pathway to recovery’ through a new owner taking over the business, the company said, as its own ‘future will shortly come to an end’.
Harland & Wolff’s shipyard. Pic: PA
The iconic Belfast company that built the Titanic is to collapse into administration.
Harland & Wolff has announced it is insolvent and will appoint administrators.
An administration order will likely be made this week, it added.
Between 50 and 60 jobs are to be lost immediately, the company said, most of them based in London.
Some staff will be moved to other sites. Staff employed by each of Harland & Wolff’s four yards are not affected.
Core operations at the locations will remain unaffected.
Call for government action
The union representing most members in two of the sites said its preferred option is a single buyer with a history of shipbuilding, rather than a private equity firm looking for a short-term profit.
“Workers, their families and whole communities now face their lives being thrown into chaos due to chronic failures in industrial strategy and corporate mismanagement,” the GMB union said.
It called on the government to intervene and protect the four shipbuilding yards as it said all 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,” the union added.
Harland & Wolff’s future hung in the balance in July
The announcement follows a full review of all group holdings which began in July.
A new owner?
Financial advisors were appointed to find potential investors or buyers of the business and “a number of parties” expressed an interest in “some or all” of the group’s activities, Harland & Wolff said on Monday.
Bids are expected shortly, it added.
Discussion is also ongoing with “several parties” to secure interim funding by October for the business.
“There is a credible pathway to recovery for the group”, it said.
Babcock International, the London-listed defence contractor was revealed by Sky News to be weighing a possible bid for some of Harland and Wolff’s assets.
Navantia, the Spanish shipbuilder which has a joint contract with Harland and Wolff, is likely to be among the rival bidders.
‘A very challenging time’
“The group faces a very challenging time”, its interim executive chair Russell Downs said.
“Good progress has been made to test the market for investor appetite, but this is likely to be via acquisition thereby reluctantly concluding that the plc listed vehicle’s own future will shortly come to an end.”
