The British shipbuilder Harland & Wolff, renowned for constructing the RMS Titanic, has entered administration after failing to secure sufficient funding.
The company, which also constructs warships for the UK government, announced on September 16th, 2024, that it will begin administration proceedings, a process akin to bankruptcy in the United States, enabling restructuring rather than liquidation.
Harland & Wolff applied for a GBP 200 million (USD 264M) loan from UK Export Finance, which was declined, leaving the firm unable to meet its financial obligations. Despite the crisis, the shipbuilder has confirmed that core operations, including its historic Belfast shipyard, will continue. The yard is currently constructing 3x Royal Navy vessels, and efforts are underway to explore a potential sale of these operations, alongside a search for further funding.
Russell Downs, the company's executive director, cited "significant historic losses" and an inability to secure long-term financing as critical factors contributing to the company's financial difficulties. Downs also indicated that layoffs have begun in non-core divisions and within the parent company.
This is not the first financial challenge for Harland & Wolff. The shipyard was placed into administration in 2019 before being acquired by UK energy firm InfraStrata, which redirected the company’s focus toward energy projects, including the Islandmagee Gas Storage Project in Northern Ireland. Despite the financial troubles, operations related to ship repair and the Islandmagee project will continue.
Concerns have been raised regarding Harland & Wolff’s ongoing involvement in the Royal Navy shipbuilding project, which is being developed in partnership with Spain’s Navantia. Both Navantia and UK defense contractor Babcock International are reported to have expressed interest in acquiring the Belfast shipyard.
The British government has stated it is actively seeking solutions to protect jobs and find a path forward for the shipbuilder, but concerns over taxpayer risk have led to a refusal to provide financial aid. Harland & Wolff, which employed ~1,300 people prior to its administration filing, had been struggling financially for several years, reporting losses exceeding GBP 25 million (US$33 million) in 2023. The company ceased trading on the LSE/London Stock Exchange earlier this year after failing to submit audited accounts.