Harland and Wolff, the Belfast shipbuilder known for constructing the Titanic, is set to move into administration, expecting between 50 to 60 immediate redundancies, though staff at its four shipyards will remain unaffected.
This marks the second time in five years the company has entered administration, with the process limited to the holding company while operational companies are anticipated to continue functioning.
A review from July concluded that Harland & Wolff Group Holdings PLC is insolvent based on its latest financial accounts, and insolvency practitioners from Teneo will oversee the administration process, resulting in the delisting of shares.
Having once employed 40,000 workers in Belfast, the shipyards saw worker numbers fall to 400 in recent years.
Historically a hotbed of militant unionism, the Belfast shjpyards were the scene of violent anti-Catholic pogroms in 1886, 1912. 1920-21, 1935, 1939, 1943, 1969 and 1970.
H&W last made a profit in 1968, since when the shipyard has been subsidised by the Westminster government. It was estimated by UU lecturer Richard Harrison that H&W losses totalled 35pc of its turnover. It has recently been engaged in repair of oil rigs and worker numbers fell to 400. Two cruise ships were sent to the shipyard for refits recently.
H&W was a privately-owned shipyard established in 1861 known for building innovative ships with flat-bottomed hulls and strong iron upper decks.
Between 1909 and 1914, H&W built the Olympic, Titanic and Britannic ships and also constructed small warships during WWI. The expulsion of the few Catholic workers who found employment in the shipyards was something of a Belfast tradition.
Despite extensive damage to the Queen’s Island facility was damaged during the Belfast Blitz and produced six aircraft carriers by the end of WWII. The Supertakner Myrina was built there in 1968. Before the expulsion of 1935, there were just 200 Catholics out of 4,000 workers. Before another 1970 (the tenth) there were 400 Catholics out of 10,000 workers.
Nationalised in 1977, H&W was later sold to a management/employee buyout in 1989 and diversified into ship refits, oil platform repairs, wind turbines, leading to its parent company going into administration in 2019..
Interim executive chairman Russell Downs said “the group has faced a very challenging time due to historic losses and a failure to secure long-term financing.
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 in Ireland and England have a strong capability, under new ownership and with the continuing support of their customers, to deliver ship building and 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 Belfast and its communities in particular.”
Matt Roberts, trade union leader, said: “Workers, their families and whole communities now face their lives being thrown into chaos due to chronic failures in industrial strategy and corporate mismanagement. 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 – to the mercy of the market is not good enough. The Westminster Government must provide support and oversight to get the market to the solution we need.”
