Harland & Wolff, the famous Belfast shipbuilding company, is in danger of going bankrupt and risking hundreds of jobs, according to the BBC. The firm, known for building the Titanic over a century ago, is currently in negotiations to prevent its collapse. The announcement comes after a memo was sent out by one of the unions representing workers at the shipyard informing them that there is “only funding for the business until the end of this month”, and is calling on the UK government to assist.
Rothschild bank is currently undertaking a review that is expected to be completed in the coming weeks to look at options for the struggling shipyard. Harland & Wolff has yet to comment on the likelihood of their closure, while Rothschild has refused to provide any insight.
The GMB union stated that the company’s financial position is very serious and sent a letter on Friday to both the defence secretary and the business secretary reiterating the risk. The union believes that time is running out and the government needs to act quickly. The company employs 1,500 across all its yards including Methil and Arnish, Appledore in Devon, as well as the historic Titanic shipyard in Belfast.
The firm has been in trouble recently, with shares being suspended since the beginning of July. The government rejected a £200m loan guarantee and the company is currently loss-making. Despite US-based lender Riverstone lending the company £19.5m in August to cover their debt, they still need additional funding beyond the end of September. The company is also facing other concerns like senior directors leaving and the possibility of administration.
The GMB union says any private company that bids on the business should not be allowed to pick and choose which yards or contracts they take. The union has had concerns over private bids being made for parts of the company, as it would undermine the company’s industrial strategy. In 2019, the shipyard avoided administration after forming a three-year contract with the Spanish shipbuilder Navantia to build three Royal Navy support ships
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