Harland & Wolff Shipyards Sale Progressing
The sale of Harland & Wolff shipyards is moving forward, with the company’s board expecting completion in the coming weeks. However, to prepare for the sale, the company plans to move its individual businesses into administration. This decision comes despite earlier assurances that the company had sufficient finances to maintain operations during the transition.
Administration and Sale Process Details
On January 14, the directors of Harland & Wolff announced their decision to enter administration after a prolonged sales process. They stated that the survival of the companies, which include four shipyards, was no longer viable. The ongoing sale process aims to transfer the majority of the core Harland & Wolff assets to a new purchaser.
The administration notice includes the shipyards located in Belfast and Appledore, as well as smaller fabrication yards at Arnish and Methil. It also covers the “People & Skills” division. Previously, the publicly traded parent company entered administration in December, but the shipyards continued operations. They received temporary financing from Spain’s Navantia group, allowing normal business operations to persist during the transition period.
The company’s latest announcement highlighted the increasingly challenging trading environment. In response, management has taken steps to minimize spending. Discussions in the House of Commons on January 15 also addressed the acquisition by Navantia. Northern Ireland Secretary Hilary Benn confirmed that the commercial agreement is progressing, with adjustments made to ensure the Royal Navy Fleet Auxiliary’s fleet solid support ships contract can proceed.
Regarding debts to suppliers, Benn indicated that it would be up to Navantia to decide which invoices to pay. He noted that maintaining good relationships with suppliers is crucial for the fleet solid support ship program. The acquisition still requires regulatory approval, with the companies aiming for a closing date in January.