Government sweeps in with a $2.4b plan to save Whyalla steelworks
Prime Minister Anthony Albanese and South Australian Premier Peter Malinauskas have announced a $2.4 billion package to save Whyalla steelworks after its operator was placed under administration.
Yesterday, the state parliament rushed legislation to force OneSteel Manufacturing, which owns Whyalla steelworks and is part of Sanjeev Gupta's GFG group, under administration.
Today's multibillion-dollar announcement includes $100 million for immediate on-the-ground support, including $50 million for creditor assistance payments.
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Prime Minister Anthony Albanese announced the $2.4 billion plan today. Nine
$1.9 billion will go towards investing in the steelworks' future and $384 million will help stabilise the steelworks.
The state government has deferred $50 million set aside for the Hydrogen Jobs Plan to prioritise securing the steelworks.
Albanese, speaking from Whyalla today, said the package was a vote of confidence in Whyalla and will set up jobs for the future.
"We want Whyalla not just to survive but to thrive and grow and that is very possible with the vision that I share with ... the premier of South Australia," he said.
"What we had today was a feeling of relief that the uncertainty is over, that the jobs here are secure and that the future is secure as well."
Last month, the state government revealed GFG owed them tens of millions of unpaid royalties while SA Water was owed about $15 million.
Gupta recently announced he would sell his Tahmoor Coking Coal Mine in NSW to help pay off his debts in Whyalla.
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OneSteel Manufacturing, which owns Whyalla steelworks, was forced into administration yesterday. Nine
Whyalla is one of two steelworks in Australia and produces 75 per cent of the country's structural steel.
It is the only domestic producer of steel long products and helps build railways, bridges, schools, hospitals, high-rise towers, transmission infrastructure and defence assets.
The steelworks employ 1100 workers and support more than 2000 indirectly.
Malinauskas, speaking alongside Albanese, insisted the package was not a bail-out for Gupta and GFG but to secure the future of Whyalla and steelmaking in Australia.
"They will have to deal with the process of administration," he said.
"What we're going to do is support the businesses on the ground who have done nothing wrong and do not owe anything to anyone.
"The good thing about these creditors is, while they've not been getting paid, they have continued to pay their workers and that is what has kept this town running but their sacrifice deserves to be recognised and that is."
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South Australian Premier Peter Malinauskas insisted the package was not a bail-out for Gupta and GFG. Nine
KordaMentha has been appointed administrator and will be searching for a new owner.
Albanese assured no jobs would be lost in the process.
The Australian Workers' Union, Australian Manufacturing Workers' Union, Electrical Trades Union and Maritime Union of Australia all welcomed the support package, citing a sense of hope for the future.
GFG said it was assessing what yesterday's developments would mean for the business and "our concern is first and foremost the wellbeing and safety of our employees".
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