Harland & Wolff enters administration amid fears over 400 jobs at threatened Scottish shipyards

Fears have been raised over 400 jobs at two Scottish shipyards earmarked to kickstart homegrown wind turbine manufacturing amid warnings over “a hammer blow to Scotland’s energy workforce”.

The fears have emerged after Belfast shipbuilder Harland & Wolff announced the business is set to move into administration.

The decision comes after the firm that built the Titanic launched a six-week strategic review of the business in July, which includes fabrication sites at Methil in Fife 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.

The Harland and Wolff operations | PA

But the 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”.

It comes after Petroineos announced 400 jobs would be lost over the next two years after confirming Scotland’s only oil refinery at Grangemouth will be closed and replaced with an import terminal.

The GMB had previously said that uncertainty around jobs came months after the company hailed plans to turn its Scottish sites into manufacturing hubs for renewable energy with new quays and a floating dry dock.

Gary Cook, GMB Scotland senior organiser for manufacturing, said: “This is a hammer blow to Scotland’s energy workforce and an all too familiar story.

“Just this week, it was announced Grangemouth will cease refining operations with hundreds of redundancies. But it does not need to be the end of the yards at Arnish or Methil. They can and must be cornerstones of Scotland’s manufacturing foundations.

“Both the Scottish and UK Governments have made promises of a ‘just transition’. It’s now time for them to keep those promises and secure the future of these yards.

“If a ‘just transition’ is to be anything other than a hollow phrase, then the cycle of crises must be broken. Both yards need public investment to make them competitive so they can build Scotland’s offshore wind here at home.”

Scottish LibDem MSP, Willie Rennie, said 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”.

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

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.”

Insolvency practitioners Teneo will act as administrators and shares will be delisted.

Harland & Wolff interim executive chairman Russell Downs said the group had faced a “very challenging time” due to historic losses and failure to secure long-term financing.

He added: “Unfortunately, extremely difficult decisions have had to be taken to preserve the future of our yards.

“Despite the recent challenges, the four yards have a strong capability, under new ownership and with the continuing support of their customers, to deliver UK-based ship building and leading UK based renewables employing over 1,300 committed personnel.”

The Scottish Government was contacted for comment.