Harland & Wolff, the owner of Belfast’s historic shipyard that built the Titanic, is set to enter administration after failing to secure new funding. This development deals a significant blow to UK government plans to revitalise shipbuilding in Belfast. The company announced its insolvency and is preparing to appoint administrators from Teneo. 50 to 60 immediate redundancies are expected, though shipyard staff will not be affected initially.

Despite the financial struggles, the core shipyard operations in Belfast, Devon, and Scotland will continue trading while potential buyers are sought. The company has expressed hope that these shipyards will be acquired as part of the ongoing sales process. Earlier this year, Harland & Wolff employed around 1,600 people across various operations, including shipyards and a proposed gas storage project in Northern Ireland.

This marks the latest chapter in a series of challenges for the Belfast yards, which once employed as many as 20,000 workers. Harland & Wolff’s administration also casts doubt on the UK government’s promise to build three warships at the Belfast yard as part of a consortium with Navantia, a Spanish state-owned shipbuilder. The failure to secure a £200 million loan guarantee, initially proposed by a previous Conservative government, added to the already existing financial struggles.

While existing shareholders are likely to lose their investments, Rothschild, the investment bank overseeing the sale, has reported that up to 20 companies have expressed interest in acquiring parts of the business. Potential buyers include Babcock International and Navantia. However, union leaders have urged the government to intervene if a suitable buyer cannot be found, to protect jobs and maintain essential shipbuilding skills.

This marks the second time in five years that the Belfast shipyards have faced administration, after oil services company InfraStrata bought them out of insolvency in 2019, adopting the Harland & Wolff name and attempting to revive its shipbuilding legacy. The company’s financial situation had become increasingly precarious in recent months, despite efforts by interim boss Russell Downs to find buyers and inject additional funds. With the administration looming, the future of the historic shipyards remains uncertain, raising concerns about the long-term prospects for shipbuilding in Belfast.