Fate Assets liquidated Founded 1 September 1977 | Ceased operations 1989 | |
Industry ShipbuildingMarine engineeringNaval architecture Defunct 1989 (De facto)2013 (De jure) Number of employees 87,000 (1977)62,000 (1982)5,000 (1987) | ||
British Shipbuilders Corporation (BS) was a public corporation that owned and managed the shipbuilding industry in Great Britain from 1977 through the 1980s. The British Shipbuilders Corporation headquarters was at Benton House in Newcastle upon Tyne, England.
Contents
History
The corporation was founded as a result of the Aircraft and Shipbuilding Industries Act 1977, which nationalised 27 major shipbuilding and marine engineering companies in Great Britain. A further 6 ship repair companies and a further shipyard were also acquired by the corporation, with British Shipbuilders initially comprising 32 shipyards, 6 marine engine works and 6 general engineering plants. Collectively, British Shipbuilders accounted for 97% of the UK's merchant shipbuilding capacity, 100% of its warship-building capacity, 100% of slow speed diesel engine manufacturing and approximately 50% of ship-repair capacity. Harland & Wolff, the only shipbuilder based in Northern Ireland was deemed to be a special political case and remained out of the control of the British Shipbuilders' management, despite it also being in state ownership from 1977.
The same act nationalised the three large UK aerospace companies and grouped them in an analogous corporation, British Aerospace.
Leadership and organisation
The first Chairman of British Shipbuilders, serving from 1978 to 1980, was Admiral Sir Anthony Griffin. He was succeeded by Sir Robert Atkinson, who in turn was succeeded by Graham Day in 1984, Phillip Hares in 1986, with the final Chairman, John Lister, taking office in 1987.
The company was initially organised into four operating divisions: Merchant, Naval, Ship-repair, Marine Engineering and General Engineering. This was restructured into five trading divisions in 1980: Merchant Shipbuilding, Warship-building, Engineering, Ship-repair and Offshore.
List of Chairmen
Privatisation
By the end of 1982, British Shipbuilders had closed half of its shipyards in an effort to reduce over-capacity. The terms of the British Shipbuilders Act 1983 then required the company to begin a process of privatising its remaining assets. The various divisions that had remained under integrated nationalised ownership were divested throughout the 1980s as the company wound up operations. The profitable warship-builders were sold off initially, with the merchant shipyards sold off or closed on a piecemeal basis, culminating in the sale of Govan Shipbuilders to Kvaerner in 1988 and Ferguson Shipbuilders to the privatised marine engine builder, Clark Kincaid, in January 1989. British Shipbuilders finally ceased active shipbuilding operations in 1989, with the closure of its last shipyards; North East Shipbuilders Ltd.'s Pallion and Southwick Shipyards at Sunderland. The remaining assets of North East Shipbuilders Ltd. were then privatised.
Abolition
The British Shipbuilders Corporation continued to exist as a 'shell corporation' in statute, in order to be accountable for any liabilities incurred during its operational history, until it was abolished in 2013 as part of the Government's 2010 public bodies reforms. From March 2013 any remaining liabilities of British Shipbuilders passed to the Department for Business, Innovation and Skills.
Assets subsumed by British Shipbuilders
The assets of the following companies vested in British Shipbuilders on 1 September 1977.
Shipbuilders and ship repairers
Marine diesel engine manufacturers
Note: Harland and Wolff, Belfast was state-owned but did not form part of British Shipbuilders.