Arrium must reform before handout: Pyne

The provision of federal government funds to help troubled steelmaker Arrium would not be a simple handout and would require structural reform, Industry Minister Christopher Pyne says.

Mr Pyne says the government is already talking with the South Australian government about providing assistance to Arrium.

He says it will take some time to finalise those discussions but has ruled out any simple cash injection.

"We're not in the business of giving taxpayers' money to businesses that are struggling," Mr Pyne told reporters in Adelaide on Friday.