Harland & Wolff, Titanic’s Builder, Declares Insolvency Amid Financial Struggles

Harland & Wolff, the historic shipbuilder responsible for constructing the Titanic, has declared itself insolvent after failing to secure critical funding. The 163-year-old UK-based company announced on Monday that it would likely enter administration in the coming days, following the rejection of its £200 million ($264 million) funding request from UK Export Finance.

While administration offers the company an opportunity to restructure rather than face immediate liquidation, the financial difficulties have already resulted in job cuts in its non-core operations and holding company. However, the company’s core activities, including its Belfast shipyard—where the Titanic was built and where three warships are currently being constructed for the UK government—will remain operational as the firm continues to seek new financing or explore the sale of its operations.

Harland & Wolff has faced financial challenges in the past, narrowly avoiding bankruptcy in 2019 when it was acquired by UK energy firm InfraStrata. Despite its struggles, the company delivered its first vessel in 20 years from the historic Belfast site in 2022. Its current focus has included ship repair and projects related to green energy, such as the Islandmagee Gas Storage Project in Northern Ireland.

Interim executive director Russell Downs acknowledged the company’s dire financial situation, citing historical losses and the failure to secure long-term funding. UK labour union GMB urged the government to intervene, warning against private companies “cherry-picking” contracts or shipyards, particularly given the ongoing warship contract with the Ministry of Defence.

The UK government, while recognizing Harland & Wolff’s importance, stated that market solutions are currently best suited to address the company’s financial challenges, as providing taxpayer funding would pose significant financial risks. The government continues to engage with stakeholders in an effort to safeguard shipbuilding jobs and manufacturing operations across the UK.