The UK Defence Committee published on Wednesday, January 22 a letter to the secretary of state for defence regarding Harland & Wolff’s announcement that it intends to file for administration. On January 21, 2025, the chair Tan Dhesi MP, wrote a letter to the secretary of state for defence, Rt Hon. John Healey MP, addressing significant concerns about the recent announcement of Harland & Wolff entering administration.
Harland & Wolff announced two weeks ago that a notice of intention to file for administration of its companies has been made.
“The directors have reluctantly taken the decision, after a lengthy sales process with assistance from leading advisers, that survival of the Companies is no longer viable. They have concluded the best remaining outcome is to pursue a survival of the business under new ownership,” reads the company’s announcement.
The announcement concerns the Harland & Wolff companies comprising Harland & Wolff Holdings Limited, Harland and Wolff (Belfast) Limited, Harland and Wolff (Appledore) Limited, Harland and Wolff (Arnish) Limited, Harland and Wolff (Methil) Limited, and Harland and Wolff (People & Skills) Limited.
The companies are currently subject to a sale process, Harland & Wolff said, which is expected to be completed in the coming weeks.
The letter asks the Ministry of Defence to clarify “what are the approvals upon which the sale of Harland & Wolff to Navantia UK is dependent and what progress has been made in achieving them.”
It asks which parts of Harland & Wolff are Navantia UK purchasing and which parts of the business are not covered by the sales.
To remind, Navantia UK issued in December a statement mentioning that it is in discussions with Harland & Wolff, a historic British shipbuilding business, to acquire its operations across four sites: Belfast in Northern Ireland, Appledore in the South West of England, and Methil and Arnish in Scotland.
“Under the proposed agreement, which remains subject to completion and regulatory approvals, Navantia UK will manage all four facilities, bringing its extensive expertise in shipbuilding, fabrication, complex programme management and fostering knowledge transfer,” Navantia UK said at the time.
The Committee notes that in the “business secretary’s oral and written statements of 19 December no mention was made of Harland & Wolff entering administration.”
“However, during Northern Ireland questions on 15 January, the Northern Ireland Secretary stated that the administration announcement, which involves the other side of the runway, is part of a process to ensure that the takeover by Navantia goes ahead,” it is said in the letter.
The letter also asks, among other things, the government what is the impact of Harland & Wolff entering administration on the Fleet Solid Support Ship programme and other shipbulding projects, and what action is the government taking to support the suppliers of Harland & Wolff.
The Committee raised several pressing questions for the Secretary of State to address by 3 February, mentioning characteristically that “we expect comprehensive answers to our questions, not least to help inform Harland & Wolff’s workers, their families and the company’s suppliers and the wider shipbuilding community of the Government’s plans.”
Chair Tan Dhesi MP stressed that “a thriving shipbuilding sector is vital to the UK economy and the Government’s growth plans and it is important that the Government’s policies in this area are subject to robust parliamentary scrutiny.”
Update: UK subsidiary of Spanish state-owned shipbuilder Navantia S.A., S.M.E., Navantia UK, has completed yesterday the takeover of Harland & Wolff. More information will come tomorrow.
