Shipyard Sale Expected as Harland & Wolff is Insolvent, Sets Administration
For the second time in five years, the parent company of famed shipbuilder Harland & Wolff is heading for administration with the board confirming the...maritime-executive.com
It appears that the current and previous governments were quite correct in withholding 200 million pounds of taxpayer money. The real question is whether Fleet Solid Support is going to get officially cut with the upcoming defense review. The 60% domestic UK content figure looks unworkable at this point and the RFA can’t man a single solid support ship let alone 3. Since the inception of FSS, two elderly Fort class ships were sold to Egypt, the 2 Wave class are laid up for eventually disposal and 1 Tide class is laid up, one is being overhauled and 2 are operational. It is doubtful that Fort Victoria can be crewed for the 2025 aircraft carrier deployment or will ever go to sea again. Even if the ongoing RFA strike is resolved, there is no guarantee that any settlement, no matter how favorable, will encourage enough RFA recruiting to cover the current fleet, let alone 3 FSS units.
Harland’s most valuable remaining asset is arguably its share of a £1.6bn contract to build three support ships for the Royal Navy.
Large chunks of the ships were due to be fabricated at Appledore, with the rest of the work done by fellow contractor Navantia, the Spanish state-owned shipbuilder, in Cadiz.
The vessels would have then been assembled at Harland’s historic shipyard in Belfast.
However, the company’s financial troubles have plunged the project into crisis.
In recent weeks, bosses at Harland – assisted by Rothschild – have initiated talks with potential buyers who could take the business on, with Navantia emerging as the frontrunner.