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The shipbuilding company Harland and Wolff, which occupies the same yard best known for building the doomed Titanic, is to be placed into administration for the second time in five years.
The historic Belfast company has said between 50-60 immediate redundancies are expected, but that staff employed at its four shipyards are not immediately affected.
Insolvency practitioners Teneo are being lined up to act as administrators while shares in the company will be delisted.
Northern Ireland’s first minister Michelle O’Neill said she will work to protect jobs, with her and Northern Ireland’s deputy First Minister meeting with trade union representatives on Monday afternoon.
“Our interest in this is that jobs are protected. We’ll continue to work with them in terms of, hopefully, arriving at a commercial solution that actually allows the employment to continue,” she said.
“We’re meeting with some of the union representatives later on.”
Harland and Wolff, which famously built the Titanic, which sank on its maiden voyage in 1912, has four shipyards – one in Belfast, two in Scotland and one in England.
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 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.”
The company is part of a consortium that landed a major contract to build supply ships for the Royal Navy.
It had applied for a £200 million loan guarantee from the government as part of efforts to restructure its finances.
However, the Government decided in August not to act as a guarantor on the lending – while also ruling out direct funding to maintain the company’s liquidity.
Harland and Wolff interim executive chairman Russell Downs said the group had faced a “very challenging time” due to historic losses and a failure 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 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.”
Matt Roberts, GMB National Officer, said: “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.“
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 company’s 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.”
