Emergency talks between Harland and Wollf (H&W) and its principal lender continue after the UK government refused the company’s application for a £200 million loan guarantee lifeline.
UK business secretary, Jonathan Reynolds - who visited H&W Arnish yard in Lewis during
last month’s election campaign in June, meeting with its leadership team, workforce
and apprentices - is expected to make a statement in parliament regarding the situation
today (Monday).
Around 145 people are employed at the Arnish site.
H&W is locked in intense discussions with New York based Riverstone Credit Management as it urgently seeks alternative new financing arrangements.
An application for £20 million to see the company survive the immediate period
“Strategic options” for the future has taken on a fresh focus with global financial advisory group, Rothschild, hire to asses the best route for the firm.
Chief executive John Wood has departed the company having taken a “leave of absence ... with immediate effect.”
Restructuring expert, Russell Downs, who is to be installed as interim executive
chairman, stressed the “great weight of responsibility” for all stakeholders involved
in the business to secure a long-term future.
The firms seeks to complete a recapitalisation programme intended to provide a “sustainable financial footing” into the medium and long term.
Amid the uncertainty Western Isles MP, Torcuil Crichton, has called for jobs at the Arnish fabrication yard to be protected.
At a House of Commons meeting with industry minister, Sarah Jones, he emphasised the economic importance of the yards to the Scottish economy and to Labour’s GB Energy plans for renewables.
Speaking after the meeting Torcuil Crichton MP said: “The key issue is for a workable, sustainable plan to be in place to secure the future of the yard and crucially the jobs of the workforce. These workers have faced too much anxiety in recent years.
“The uncertainty which this situation creates is obviously unwelcome but we have
to work on the long-term future for Arnish and with all other interests, including
the Scottish Government, Scottish Enterprise, HIE the Western Isles Council and Stornoway
Port.
“I have been in close discussions with the relevant departments of government over the last few days and with the trade unions who are all committed to a future for Arnish. Protecting these jobs is essential .
“There are 145 skilled jobs and apprenticeships at Arnish and they can be crucial stepping stones in our mission to turn the U.K. into a clean energy superpower.”
MSP Alasdair Allan said: ““The yard at Arnish provides vital skilled employment opportunities locally, and has been going from strength to strength in recent years. It is a hugely important economic asset for the Western Isles, and has always been renowned for the quality of its workforce as well as what it produces.
“Following their planned development, the yards at Arnish and Methil are also due to play a key role in delivering sustainable energy solutions as part of both the UK and Scotland’s wider Net Zero targets. I hope that a suitable investor for the company can be found as soon as possible, and that jobs here continue to be protected.”
H&W’s Belfast yard is one of Europe's largest heavy engineering facilities, with deep water access, two of Europe's largest drydocks and vast fabrication halls.
It acquired a yard in Appledore in August 2020 and took over the assets of BiFab the following year in Fife and Arnish, Lewis.
In February 2021, the company acquired the assets of two Scottish-based yards along
the east and west coasts. Now known as Harland & Wolff (Methil) and Harland & Wolff
(Arnish), these facilities will focus on fabrication work within the renewables,
energy and defence sectors.
Calls to protect Arnish jobs after government rejects Harland and Wolff’s loan guarantee bid
22 July 2024
