The South Australian Government has taken decisive action on the fate of the Whyalla Steelworks after owner and operator GFG Alliance – owned by UK billionaire Sanjeev Gupta – was accused of financial mismanagement.
Supported by the federal government, South Australia has placed the steelworks into administration under KordaMenth, who have been instructed to seek a new owner for the asset.
Prime Minister Albanese and SA Premier Peter Malinauskas jointly announced a $2.4 billion package yesterday, designed to keep the steelworks operational and preserve the jobs of those working there.
Mr Albanese said the government had set up a $1 billion green iron investment fund, up to half of which would go to Whyalla, with the rest to be made "available for other projects as well".
Yesterday was a dramatic day in South Australia and the state parliament," SA Premier Malinauskas said.
"This is not about the survival of the steelworks. This is about a long-term future for steelmaking in this country."
Unions laud swift intervention
The Australian Workers’ Union, Australian Manufacturing Workers’ Union, Electrical Trades Union and Maritime Union of Australia have all expressed their approval of the joint government action, which has provided “long overdue certainty to workers and a community that have dealt with disruption and doubt for far too long.”
The unions released a joint statement expressing their intention to work closely with the government bodies to ensure the steelworks operates smoothly during the transition.
“This announcement shows what real political leadership looks like: turning a challenging situation into a huge shot in the arm for Australia’s sovereign capability,” AWU national secretary Paul Farrow said.
“Whyalla supplies three-quarters of Australia’s domestic steel supply. Without it we would be beholden to foreign nations for the building blocks of our society.”
Federal opposition leader Peter Dutton also expressed his support for the government’s intervention.
“We need to make sure that we have a strong steel industry, that workers at Whyalla are supported, and we support the measures helping those workers and making sure that the business is viable,” he said in an interview with Sky News.