H&W future still hangs in the balance
H&W’s future hangs in the balance (Source: Harland & Wolff)
The iconic shipyard in Belfast belonging to Harland & Wolff (H&W), and three other shipyards that are part of the group, are still in limbo as the UK Government fails to persuade potential buyers to propose a rescue bid. In addition to the Belfast facility, the group also owns the well-known Appledore yard in north Devon, and two shipyards in Scotland, Methil and Arnish.
Shares in the 163-year-old listed company were suspended in July and it has now announced that it is preparing to enter administration. However, the group’s shipyards function independently and could still operate after the company enters administration.
Despite having won a GBP 1.6 billion contract to build three support ships for the Royal Navy as part of consortium led by Spanish shipbuilder, Navantia, H&W has been crippled by substantial increases in interest rates. In July, the UK Government turned down a request for a loan guarantee that would help to lower the interest burden.
It is thought that Navantia could propose a rescue package, protecting about 1,200 jobs across the four yards and a network of marine suppliers across the UK. However, the state-owned Spanish company is holding back, at least for the moment.
