RMS Titanic shipbuilder looking to stay afloat.

Harland & Wolff, the company responsible for building the RMS Titanic are lining up the insolvency practitioner firm, Teneo, to rescue its flailing business. The 163 year old company is looking to place its holding company, Harland & Wolff Group Holdings Plc into administration.

Expansion
At the young age of 28 Ulster based English politician, Edward Harland bought a shipyard in Belfast having run it for years. 3 years later in 1861 Harland established a partnership with his personal assistant Gustav Wolff and Harland & Wolff was formed.

Unsinkable
Harland & Wolff grew rapidly receiving regular orders from shipping company, White Star Line. It 1909 Harland & Wolff embarked on its biggest project, the construction of the grand and luxurious RMS Titanic. If you’ve never heard of the Titanic, watch the movie starring Leonardo DiCaprio and Kate Winslett.

The Titanic took 26 months to build at the Harland & Wolff, Belfast shipyard which employed 14,000 men, 3,000 of whom were involved in the construction of the Titanic. It cost around £1,500,000 at the time and was hailed as “unsinkable”. On 15th April the RMS Titanic sank having hit an iceberg on its maiden voyage. Amongst its passengers was naval officer, Captain Smith from Stoke. Is the birthplace of the Titanic set to sink too?

Icebergs
Despite its rapid growth and expansion, Harland & Wolff have experienced icebergs on its journey. By 2003 The company was struggling to maintain its building operations instead focusing on renewable energy including offshore wind and tidal turbines. In 2019 it was placed into Administration and bought for £6m by London based energy company, InfraStrata.

The ambition was to complete a project to build 3 ships for the Royal Navy with a total value of £700 million. The contract was heralded as a return to shipbuilding in Belfast. The then Northern Ireland Secretary, Chris Heaton-Harris, said it was a "fantastic testimony to Belfast's shipbuilding heritage and reputation for innovation and expertise".

Despite the hope, many remained sceptical of such a large contract being awarded to a company now out of date with relevant experience. In 2021 the company’s financial woes were growing with the accounts showing a loss of £25m.  In 2022 The shipyard’s problems have been exacerbated by the Labour government’s rejection of a £200mn emergency loan request.  The 2022 audited annual accounts revealing a loss of about £70m. The auditor noting “material uncertainty” in particular with regards to the lack of new contracts and funding.

Next voyage
Despite the rough seas it has experienced in recent years, Harland & Wolff are optimistic about its future. A spokesman at the company said “We are continuing to work extensively with all parties to find an outcome for Harland & Wolff that delivers shipbuilding and manufacturing in Belfast, Scotland and across the rest of the UK and protects jobs.”

Whilst job losses are envisaged, the company are hopeful that a number of its core operations will be saved and that there is a “credible pathway”. The company is determined to keep its flagship Belfast yard, other UK yards and its contract with the Ministry of Defence afloat. The hope being to avoid the disastrous sinking that the ill-fated Titanic befell.