The Federal and SA governments were forced to step in after the steelworks entered administration. Photo: Whyalla Steelworks.
The Commonwealth and the South Australian governments have provided a multi-million dollar package to save the Whyalla Steelworks from closure, following the collapse of the former owning company GFG and the steelworks entering administration.
The more than $2.5 billion package was jointly announced by Prime Minister Anthony Albanese, South Australian Premier Peter Malinauskas and Minister for Industry and Science Ed Husic.
It will be delivered in three phases, including immediate on-the-ground support, stabilising the steelworks’ business, and an investment in the steelworks’ future.
The steelworks employs more than 1100 workers and supports another 2000 jobs indirectly. It is one of only two steelworks remaining in Australia along with Port Kembla, produces 75 per cent of Australian structural steel and is the only domestic producer of steel long products.
Initial funding will see $100 million provided for immediate on-the-ground support, $50 million in creditor assistance payments, $32.5 million in infrastructure upgrades, and $6 million for a jobs matching and skills hub.
The State and Federal governments will co-invest $384 million to fund the operations during administration, which will ensure workers and contractors have ongoing work and will continue to be paid.
A further investment of $1.9 billion will be made in the steelworks’ future, including working with whoever buys the facility to invest in the upgrades and new infrastructure to ensure a sustainable, long-term future.
A joint taskforce will also be established to provide advice and expertise in the transition to a sustainable future, and this will engage with workers, the City of Whyalla, administrators and creditors to support a path forward.
Prime Minister Anthony Albanese said Whyalla steel had forged some of Australia’s biggest projects including rail lines, airports and stadiums.
“That’s why today in partnership with the Malinauskas Government, we are delivering more than $2 billion to ensure the future of the steelworks and support local jobs,” he said.
“My government is building Australia’s future and backing Australian workers.”
Premier Peter Malinauskas said locally-made steel was vital to South Australia and Australia’s future, and the investment recognised the importance of the Whyalla Steelworks.
“I was never going to allow a taxpayer funded bail-out of GFG,” he said.
“Now that the steelworks is no longer under the control of GFG, the State Government can partner with the Federal Government and make the long-term investments necessary to secure the future of Whyalla and Australian steelmaking.
“We are stepping up to provide immediate on the ground assistance for local workers and businesses, we are stabilising the steelworks and we are setting the steelworks up for long-term prosperity.”
Federal Minister for Industry and Science Ed Husic said making more things here meant making more steel in Whyalla.
“Today we are showing our commitment to a long-term future for Whyalla and Australian steel,” he said.
“Steelmaking has provided spine to Australian industry for a century and it’s here to stay. We want a strong future for Australian steelmaking; Whyalla will help deliver that.”
