Hundreds of manufacturing jobs in Scotland face an uncertain future after troubled shipbuilder Harland & Wolff announced it is to go into administration.
The Belfast-based company - best known for building the Titanic – has brought in Insolvency practitioners Teneo to act as administrators and its shares will be delisted.
The company said between 50-60 immediate redundancies are expected but that staff employed at its four shipyards are not affected as yet.
The firm has yards in Methil and Anish on Lewis. The site in Fife was taken on by the shipbuilder following the collapse of Burntisland Fabrications (BiFab).
A company 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.”
Harland and 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.
Mr Downs said: “It’s important to recognise that this is very difficult news for staff and will affect many within group. We will work to support our staff through this transition.
“We also know that it will be very unwelcome news for shareholders who have shown significant commitment to the business over the last five years.
“The board, the senior managers and rest of the team are committed to deliver the best outcome for the four yards and communities they serve to ensure their continued operation into the long term under new ownership.
“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.
“It’s critical that the business comes through its financial troubles to secure an enduring legacy worthy of its name and its past for the benefit of the UK as a whole and its communities in particular.”
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Harland and Wolff was placed into administration in 2019 but emerged as a preferred bidder for a £1.6 billion Ministry of Defence contract.
The firm was to manufacture three vessels providing munitions, stores and provisions to the Royal Navy’s aircraft carriers, destroyers and frigates.
John Wood, chief executive of Harland & Wolff, called it “a truly defining moment” at the time.
Matt Roberts, GMB National Officer, said that workers lives were being “thrown into chaos” due to chronic failures in industrial strategy and corporate mismanagement at the shipbuilder.
He said: “All the four Harland & Wolff yards are needed for our future sovereign capabilities in sectors like renewables and shipbuilding.
“The Government must now act to ensure no private company is allowed to cherry pick what parts are retained, in terms of which yards or contracts they wish to save.
"Leaving these vital yards - and the crucial FSS contract with all its promises for UK shipbuilding - to the mercy of the market is not good enough. The Government must provide support and oversight to get the market to the solution we need."
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