Harland & Wolff, the Titanic’s builder, is heading for administration

Harland & Wolff – the shipyard which built the Titanic – is about to enter administration for the second consecutive time in just five years.

Harland & Wolff Group Holdings was “insolvent” on a basis of balance sheet, according to the Belfast-based firm.

The holding company will undergo an administration process, but the operating companies, which run the four shipyards of the company and the gas storage facility at Islandmagee in Co Antrim will continue to operate.

Teneo’s administrators are expected to be appointed in the next week, and Aim’s junior London stock exchange listing will be canceled, wiping out all shareholders.

The company employs over a thousand employees. It announced that certain “non core” staff would be made redundant, and that its “non core operations”, such as its Scilly Ferries, marine services division, and its US business, would be closed or sold.

The company has been struggling to compete and its debts are past due. The government rejected its application for a £200 million  emergency credit facility in July.

Its finance chief resigned last week.

Since July, trading in the shares of the company has been suspended. Last month, the pressure grew when the Falklands Islands government dropped Harland & Wolff from its preferred bidder for a new £120million floating port.

Russell Downs, the interim executive chairman said: “Unfortunately extremely difficult decisions had to be made to preserve our yard’s future.”

The board stated that there was “a credible pathway” for the shipyards in Belfast, Methil, Fife, Arnish, Isle of Lewis, and Appledore, north Devon, to continue operating under new ownership. The board said that several parties expressed an interest in purchasing some or all the units of the group which hold the shipyards.

Harland & Wolff’s plight, whose yellow-coloured cranes dominate Belfast’s skyline is a further blow to the group, which has been known for shipbuilding in Belfast for many centuries. The business was founded in 1861 and employed 35,000 workers at its peak.

HMS Belfast was launched on March 17, 1939 from Harland and Wolff Belfast shipyard.

Since 2003, it has focused on ship repairs, oilrig refurbishment, and offshore wind energy production. In 2019, it went into administration, but was bought out of bankruptcy. It was selected in 2022 to be part of a group that would build Royal Navy support vessels.

Susan Fitzgerald, Irish Regional Secretary at Unite, principal union in Belfast and Appledore said: “It’s vital to find the right buyer.” If that fails, the government must be ready to intervene.”

Andy Allen, a politician from the Ulster Unionist Party in Northern Ireland said: “The yard has more to it than a historical landmark. It plays a crucial role in our national defense, especially in shipbuilding, and maintenance. The government must act swiftly and decisively in order to ensure its future.

The government spokesman stated: “Harland & Wolff made it clear that this process would not affect the jobs at their shipyards, or its core operations like delivering contracts to the Ministry of Defence.

“At the moment, the market is better positioned to tackle these challenges and providing funding from government would have meant significant risk for taxpayers.

We are working with all parties to achieve an agreement that protects jobs and delivers shipbuilding in Belfast, Scotland, and the rest of the UK.