South Australian Premier Peter Malinauskas has revealed at least 33 parties are lining up to buy the Whyalla Steelworks, as the formal sale process officially opens.
Malinauskas says over 60 per cent of the interested buyers are international players, including major names from India, Japan and Korea.
“[They are] very significant global steelmakers with names that are synonymous with serious investment in the industry,” Malinauskas says.
The steelworks and associated mining operations were placed into administration in February following years of underinvestment by former owner GFG Alliance. Administrator KordaMentha and advisors 333 Capital are now leading the independent sale process.
With a secure data room open, selected bidders are beginning due diligence and preparing initial non-binding offers as part of a phased sale.
Industry minister Tim Ayres says the sale is a key moment for Whyalla and Australia’s manufacturing sector.
“The opening of the sales process represents a critical step in securing the sustainable long-term future of the Whyalla steelworks – for Australia’s sovereign capability and for good jobs in the Whyalla community,” he says.
“Through the Future Made in Australia agenda, the Australian government wants to ensure steelmaking capacity remains here onshore.
“There is real opportunity to manufacture iron and steel using Australia’s abundant ore and renewable energy to set up this industry and the Whyalla steelworks for the decades to come.”
Both the federal and SA governments have committed $1.9 billion towards transforming the steelworks into a low-emissions, integrated ‘pit to port’ facility. The funding forms part of a broader $2.4 billion Sovereign Steel package aimed at revitalising jobs and industry in the region.
Malinauskas says the intervention is already turning the tide.
“Only a few months ago, GFG was laying off workers and dozens of small businesses were doing the same, because they weren’t being paid,” he says.
“Now, thanks to our decisive action to place GFG in administration, and the $2.4 billion Sovereign Steel package being delivered in partnership with the Albanese Labor Government, the steelworks is putting on staff, and suppliers and contractors are in a much better position for the future.
“There is still a long way to go to secure a new buyer for the steelworks, however the start of the formal sale process with the establishing of a data-room for prospective buyers is a major milestone in this important process.”
KordaMentha has added 75 new workers to the steelworks, is actively recruiting more, and has opened applications for 27 new apprenticeships.
Energy and mining minister Tom Koutsantonis says the turnaround is gaining momentum.
“The heartbeat is returning to the heart of Whyalla,” he says.
“The creation of new jobs at the steelworks is a genuine sign of this vital operation finding a new lease of life – and that sends a clear and strong signal to the market as the sale process is now formally underway.
“Make no mistake, there is a long road ahead, but it is a road that Whyalla now travels with greater confidence.”