Government unveils $2.4 billion rescue plan for Whyalla Steelworks

February 19, 2025 TruthUSA

Prime Minister Anthony Albanese emphasized the importance of Whyalla to Australia’s national interest and sovereign steel.

The government, in collaboration with the South Australian government, is taking steps to secure a rescue package for the Whyalla Steelworks factory, responsible for 75 percent of Australia’s structural steel production.

This decision follows the administration of Whyalla Steelworks’ owner, OneSteel Manufacturing Pty Ltd, by SA Premier Peter Malinauskas to prevent the factory’s collapse.

The federal government’s $2.4 billion rescue package includes immediate funding of $100 million to assist Whyalla in paying off creditors, upgrading infrastructure, and improving employment outcomes for workers.

An additional $384 million will be allocated to support the operations of Whyalla Steelworks during the administration process.

Furthermore, investments totaling $1.9 billion are expected from the federal and state governments to upgrade existing infrastructure and construct new facilities to ensure the long-term sustainability of the steel factory under new ownership, with $500 million coming from the federal government’s Green Iron Investment Fund.

The SA government will contribute funds from the Hydrogen Jobs Plan and $50 million from the Whyalla Steelworks Operational Efficiency Improvements Fund.

Prior to the administration, Whyalla Steelworks had significant debts to creditors and unpaid wages for employees.

Concerns arose about the financial stability of GFG Alliance, the parent company of OneSteel, following the collapse of its main lender, Greensill Capital, in 2021.

Interviewed on Nova Adelaide Radio, Albanese highlighted Whyalla’s critical role in Australia’s national interests and the production of sovereign steel.

He stressed the importance of Whyalla for various infrastructural needs, defense assets, and national projects, further emphasizing the coordination between both governments to safeguard Whyalla’s interests.

Malinauskas clarified that the rescue package was not intended as a bail-out for GFG.

He outlined the government’s commitment to making necessary long-term investments to ensure the future of Whyalla and Australian steelmaking once the factory is under new ownership.

He assured immediate support for local businesses and workers in light of these developments.

Prime Minister Anthony Albanese (second right) and South Australian Premier Peter Malinauskas (second left) at the Whyalla steelworks in Whyalla, South Australia, on Feb. 19, 2025. (AAP Image/Isabella Ward) — Prime Minister Anthony Albanese (second right) and South Australian Premier Peter Malinauskas (second left) at the Whyalla steelworks in Whyalla, South Australia, on Feb. 19, 2025. AAP Image/Isabella Ward

GFG’s Owner Criticizes Government’s Actions

Sanjeev Gupta, the owner of GFG, expressed disappointment in the SA government’s decision to force Whyalla into administration.

He highlighted the efforts made to save and revive the plant, committing to exploring legal options in response to this development.

GFG’s acquisition of Whyalla in 2017 aimed to transition the facility to carbon-neutral by 2030, but financial challenges have hindered the plant’s performance, with reported losses exceeding $1.3 billion.

Union Support for the Rescue Package

Several unions, including AMWU, AWU, ETU, and MUA, have voiced their support for the $2.4 billion rescue package, emphasizing the importance of securing jobs and industry investments for the future.

They highlighted the significance of this investment in ensuring job security and preventing workers from bearing the brunt of corporate mismanagement.

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