Methil shipyard jobs fears as Harland & Wolff enter administration

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Calls have been made to secure the future of Harland & Wolff’s Fife yard after the company went into administration.

The Belfast shipbuilder made the grim announcement today, sparking fears for over 400 jobs at its threatened Scottish shipyards, including Methil.

The decision came after the firm that built the Titanic launched a six-week strategic review of the business in July, which includes fabrication sites at Methil and Arnish, near Stornoway, in the Western Isles. The company said between 50 to 60 immediate redundancies are expected, but that staff employed at its four shipyards are not affected.

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A Harland & Wolff statement said: “A full review of all group holdings commenced in July and has concluded that H&W Group Holdings PLC is insolvent on a balance sheet basis as per its last audited accounts and most recent management accounts.”

A general view of the Methil yard (Pic: Jeff J Mitchell/Getty Images)A general view of the Methil yard (Pic: Jeff J Mitchell/Getty Images)
A general view of the Methil yard (Pic: Jeff J Mitchell/Getty Images)

Insolvency practitioners Teneo will act as administrators and shares will be delisted. The firm, founded by in 1861 by Sir Edward Harland and Gustav Wolff, acquired the two Scottish yards three years ago.

Its position on job losses is unlikely to douse fears for workers at the two Scottish sites. The GMB union had previously said the firm’s lack of interest in discussing financial support with ministers as part of its review “should raise a red flag for anyone wanting these yards to protected”.

GMB national officer Matt Roberts said on the administration announcement: “Workers, their families and whole communities now face their lives being thrown into chaos due to chronic failures in industrial strategy and corporate mismanagement.

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“All the four Harland & Wolff yards are needed for our future sovereign capabilities in sectors like renewables and shipbuilding. The government must now act to ensure no private company is allowed to cherry pick what parts are retained, in terms of which yards or contracts they wish to save.

"Leaving these vital yards - and the crucial FSS contract with all its promises for UK shipbuilding - to the mercy of the market is not good enough. The government must provide support and oversight to get the market to the solution we need."

Richard Baker, MP for Glenrothes and Mid Fife, said: “It is crucial that there is a clear recognition at all levels of government of the importance of the yard and its highly skilled workforce. They are vital for the shared ambitions for Scotland to be a green energy powerhouse.

“The key issue for Scotland is that there is a long term and sustainable future for the two yards in Scotland. Securing the key role of the Methil yard is vital for Fife and Scotland if we are going to fulfil our ambitions to expand our renewables sector and become a leader in green energy. Unions are right to highlight the strategic importance of these yards, and this is why this process must be a priority for both UK and Scottish Ministers.”

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Willie Rennie MSP described the news of administration as “a hammer blow for workers and communities who have been put through the ringer in recent years.” He added: “Ministers have flocked to the Scottish sites whenever the opportunity for a photo has arisen. Now, the Scottish Government must be working closely with Harland and Wolff to establish what exactly this announcement means for the workers at the Methil and Arnish yards.

“If we are to fully exploit the opportunity of the renewables growth, we need to have the sites at Methil and Arnish fully utilised.”

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