The Federal and South Australian Governments have today announced a multi-billion dollar package to save the Whyalla Steelworks, just a day after the State Government placed the owner of the business, GFG, into administration.
The Whyalla steelworks employs 1,100 workers and is one of only two Australian steelworks, producing 75% of Australian structural steel. It is also the only domestic producer of steel long products.
Prime Minister, Anthony Albanese; South Australian Premier, Peter Malinauskas and Minister for Industry and Science, Ed Husic today visited Whyalla to announce the rescue funding package.
“Locally-made steel is vital to South Australia and Australia’s future, and this unprecedented investment recognises the importance of the Whyalla Steelworks,” the Premier said.
“I was never going to allow a taxpayer funded bail-out of GFG. 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 steel making.”
A joint taskforce will also be set up to provide advice and expertise in the transition to a sustainable future. The taskforce will engage with workers, the City of Whyalla Council, administrators and creditors to support a path forward, Premier Malinauskas confirmed.
Whyalla Mayor, Phill Stone said that while there was still work to be done in finding a new owner for the steelworks, today was one of the most significant days in Whyalla’s history.
“This is a massive injection into our city and a show of confidence in our future,” said the Mayor.
“The announcement is the result of close collaboration over a long period between Federal, State and Local government.
“I sincerely thank the Prime Minister and the Premier for their unwavering support, belief and trust in our city to enable the steelworks to reach its full potential for the benefit of our community, our state and our nation.”
The funding will be delivered in three distinct parts: immediate on the ground support, stabilising the Steelworks and investing in the Steelworks’ future.
Immediate, on the ground support – $100 million
- Creditor Assistance payments ($50 million)
- Infrastructure upgrades ($32.6 million)
- Jobs Matching and Skills Hub ($6 million)
Stabilising the Steelworks – $384 million
- The State and Federal Governments are co-investing $384 million to fund the Whyalla Steelworks’ operations during administration. This funding will ensure workers and contractors will have ongoing work at the Steelworks and will continue to be paid.
Investing in the Steelworks’ future – $1.9 billion
- The State and Federal Governments will work with a new owner to invest in the upgrades and new infrastructure which will be vital to ensuring the Steelworks has a sustainable, long-term future.
“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,” said Premier Malinauskas.
The Commonwealth Government has earmarked up to $500 million of the Green Iron Investment Fund to support the longer term transformation of the steelworks. It will also make available substantial additional financing to partner with a future owner and operator to upgrade the facility and ensure a green steel future for Whyalla and South Australia, PM Albanese said.
“Whyalla steel has forged some of our country’s biggest projects – rail lines, airports and stadiums. That’s why today in partnership with the Malinauskas Government, we are delivering more than $2 billion ensure the future of the steelworks and support local jobs,” said Mr Albanese.
The South Australian Government’s share will come from funding set aside for the Hydrogen Jobs Plan, which will now be deferred to prioritise securing the steelworks, as well as $50 million from the Whyalla Steelworks Operational Efficiency Improvements Fund.
The State yesterday appointed KordaMentha as administrator of the facility.
