Crucial weeks ahead for Arnish future

​Within the Harland & Wolff structure, the yards are operated by separate companies and it is only the “headquarters” that is in administration, though this could change once the Rothschilds review is completed.

Meanwhile, the Gazette has learned that 20 Non Disclosure Agreements have been signed with companies interested in taking over Arnish, either as a free-standing yard, or along with Methil, or as part of the Harland & Wolff group as a whole.

Monday’s announcement of administration did not come as a surprise to the 130 strong Arnish workforce as they had been briefed at a meeting last Friday by general manager Albert Allan, allaying immediate concerns about job security.

At corporate level, the affairs of Harland & Wolff are coming under increasingly close scrutiny with the finance director following the former chief executive, John Wood, out the door and intimation of “accounting issues of concern” by their successors.

Mr Wood built the group by acquiring distressed assets in Belfast, Appledore, Methil and Arnish. Critics say he took on loss-making work in expectation of a large Ministry of Defence contract but was always at risk of running out of money. Matters came to a head when they failed to lodge audited accounts in June.

Share dealings were suspended and Rothschilds appointed as consultants to advise on the group’s future. Mr Allan said this week that much will hinge on what emerges from their findings which are likely to be completed by October.

A letter to stakeholders from executive chair Russell Downs, who replaced Mr Wood, said that the four yards will “continue to deliver significant projects” while Rothschilds “explore potential investors or acquirers for the business”.

The letter added: “Bids are expected shortly” and “we are now also in discussions with several parties to secure interim funding to support ongoing operations until a planned transaction closure in October”.

Much of the focus is on Belfast due to the high profile of the “Harland & Wolff" name which Mr Wood deployed to full advantage and also the fact that a major Ministry of Defence contract is involved. The possibility of a “whole group sale”, to a buyer who is really only interested in Belfast, will have to be safeguarded against.

However, there are reasonable hopes that Arnish will emerge with a new owner based on the yard’s high performance and potential to benefit from work related to the renewables industry. Both Scottish and UK Governments have been urged to offer support.

Both Arnish and yards were parts of the BiFab group, latterly co-owned by the Scottish Government, and went bust in 2021 after failing to win contracts for offshore wind projects. HIE was heavily involved in finding a new operator for Arnish and the fortuitous emergence of Mr Wood appeared to offer a solution.

Since re-opening, the yard has confirmed its ability to produce high quality work, with an excellent workforce. There have been excellent relations and a commitment to an ongoing apprenticeship programme. However, the credentials of the parent company were always more questionable.

Torcuil Crichton MP said: “The Arnish yard has the order book, the skilled workforce and committed management and highly-valued steel rolling equipment which would make it an attractive prospect to any buyer. It is also positioned to take advantage of the developing onshore and offshore renewables industry.”

He added: “In talks with Department of Business Ministers I have emphasised the great potential Arnish has, so I remain optimistic about the future of the yard.”