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Harland & Wolff in administration as part of rescue deal

BBC The yellow Harland and Wolff crane with Belfast Harbour in the background. BBC
The administration process means the new owners will not inherit the company's debt

The Harland and Wolff shipyards are to be put into administration as part of the takeover process by Spain's state owned shipbuilder.

Legal notices of intention to appoint administrators to the four yards were published this week meaning the company's new owner, Navantia, will not be stuck with the firm's legacy debts.

The company that owns Harland and Wolff went into administration in October, but the firms which operate each of the yards continued to trade as normal.

In December Harland and Wolff's executive chairman told the Financial Times that administration would "regrettably" mean losses for some suppliers, leading to concerns being raised about the impact on local businesses.

H&W supply chain dealt a hammer-blow

PA Media DUP leader Gavin Robinson, pictured in 2024. He has white hair, a grey suit and a stripey tie. PA Media
DUP leader Gavin Robinson

DUP leader and East Belfast MP Gavin Robinson said the news of Harland and Wolff's four yards going into administration will be deeply concerning for the local supply chain.

Mr Robinson said that, while he expected the jobs in his constituency and the new contracts would be "safeguarded" under the new ownership, the "sudden financial uncertainty will leave many businesses in the Harland and Wolff supply chain in a precarious position".

"This will be a hammer-blow to those companies with some owed significant sums," he added.

"I urge all involved parties, including the new owners and relevant authorities, to engage urgently and find ways to mitigate the impact on our local supply chain.

"Supporting these businesses is critical to maintaining the economic stability of our constituency."

Speaking in the House of Commons earlier this week, Robinson said businesses throughout the UK are "owed tens of millions of pounds".

He asked the Secretary of State, Hilary Benn, to ensure the viability of those businesses was taken into account.

Benn said that the question of how to relate to those suppliers is "a commercial matter for Navantia".

He added: "But I am sure that it wants to build a good relationship with firms that will help Harland and Wolff."

Getty Images Gantry cranes at the Navantia SA shipyard in Cadiz, Spain, on Tuesday, Sept. 28, 2021.Getty Images
The company's new owner, Navantia, will not be stuck with the firm's legacy debts

Harland and Wolff employs a core staff of about 1,000 in Belfast, Appledore in England and Methil and Arnish in Scotland.

Those jobs will be protected as a result of the takeover deal.

Navantia already has a business relationship with Harland and Wolff.

It is the main contractor on a project to build three support ships for the Royal Navy, with Harland and Wolff acting as UK subcontractor.