Historic shipbuilder Harland & Wolff has formally entered administration for the second time in five years.
The process involves only the non-trading holding company, Harland & Wolff Group Holdings.
Its subsidiaries — Belfast in Northern Ireland, Arnish and Methil in Scotland, and Appledore in England — are not subject to the insolvency process and are continuing to trade under the control of their directors, the shipbuilding group said.
However, the move could mean its £1.6bn ($2.1bn) deal to build three fleet solid support vessels for the Royal Fleet Auxiliary (RFA) is transferred entirely to Spanish shipbuilder Navantia. The fleet auxiliary operates ships that support the UK’s Royal Navy.
Originally, most of the ships’ blocks and modules were set to be built at Harland & Wolff’s Belfast and Appledore facilities, as well as at Navantia’s Cadiz shipyard in Spain, with the final assembly to take place in Belfast.
Harland & Wolff told TradeWinds that it could not comment on the potential move, as it involved the subsidiary companies.
Navantia also declined to comment, although its shipyard at Puerto Real in Cadiz, where some of the blocks for the RFA ships will be built, was visited last week by Admiral Sir Ben Key, the UK’s first sea lord and chief of naval staff.
Construction was set to begin next year for completion by 2032.
Headcount reduced
Harland & Wolff has appointed Gavin Park and Matt Cowlishaw of Teneo Financial Advisory as joint administrators.
The shipbuilding, ship repair and marine engineering firm has 66 employees, but the company said: “The Administrators will unfortunately be required to reduce the headcount upon appointment.
“A number of employees will be retained to provide certain required services to the operational companies under a transitional services agreement with the Administrators.”
It also restated that the administration process means the value of shareholders’ investments will be wiped out. Interim executive director Russell Downs apologised to shareholders last month.
Rothschild & Co was brought in at the end of July to assess strategic options for the company and its subsidiaries. Further updates will be made “as appropriate”, it said.
