Whyalla sale attracts international interest
The sale process for the Whyalla Steelworks formally opened after receiving strong interest from global steelmakers.
Selected prospective buyers have now been given access to a secure data room, enabling parties to prepare non-binding indicative offers as part of a phased approach to the sale.
The Federal and South Australian governments have committed a combined $1.9b in funding support to transform the operations into a commercially viable, low-emissions, ‘pit to port’ iron and steel facility.
This funding is part of previous broader $2.4b assistance package underpinning long-term jobs and economic resilience for Whyalla and the Upper Spencer Gulf.
Federal Industry and Innovation Minister Tim Ayres says the steel industry is critical to the Australian economy and the community of Whyalla.
“There is real opportunity to manufacture iron and steel using Australia’s abundant ore and renewable energy to set up this industry and the Whyalla steelworks for the decades to come,” he said.
“Today’s opening of the sales process represents a critical step in securing the sustainable long-term future of the Whyalla steelworks — for Australia’s sovereign capability and for good jobs in the Whyalla community.”
KordaMentha continues to stabilise and enhance operations, an additional 75 new employees now work across core areas of the steelworks, with ongoing recruitment.
As part of the $100m assistance package announced by the Federal and South Australian Governments, 61 South Australian businesses that were owed money by GFG have now received more than $15m through the Business Creditor Assistance Scheme to support their continued operation.
Small businesses in Whyalla have also received much-needed support, with $570,000 in grants awarded to 57 businesses that had experienced a reduction in revenue due to the decline in activity at the steelworks.
Amongst the recipients is Whyalla-based Avid Engineering who early this year were down to just five staff, with its owner drawing on personal savings to keep the business afloat. Since receiving a government grant, Avid has expanded to employ 27 full-time staff and 13 casual workers.
South Australia Premier Peter Malinauskas says Whyalla has been at the heart of South Australia’s industrial strength and now has the potential to deliver sovereign steelmaking for the long term.
“Only a few months ago, GFG was laying off workers and dozens of small businesses were doing the same, because they weren’t being paid,” he said.
“Now, thanks to our decisive action to place GFG in administration, and the $2.4b Sovereign Steel package being delivered in partnership with the [Federal] Government, the steelworks is putting on staff, and suppliers and contractors are in a much better position for the future.”