In an effort to stabilise the embattled Whyalla Steelworks and support its workers, the Federal and South Australian governments have announced a $2.4 billion funding package.
Prime Minister Anthony Albanese, SA Premier Peter Malinauskas, and Industry and Science Minister Ed Husic announced the package in Whyalla, located approximately 385km from Adelaide on SA’s Eyre Peninsula.
“Whyalla steel has forged some of our country’s biggest projects – rail lines, airports and stadiums,” Albanese said.
“That’s why today in partnership with the [SA] Government we are delivering more than $2 billion ensure the future of the steelworks and support local jobs.
The move follows an earlier announcement that the SA Government would place Whyalla Steelworks into administration. Reports indicate that the steelworks is $300 million in debt and workers have experienced significant delays in receiving wages.
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“The State Government can partner with the Federal Government and make the long-term investments necessary to secure the future of Whyalla and Australian steelmaking,” Malinauskas said.
“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.”
The funding package includes $100 million for creditor assistance payments, infrastructure upgrades, and a jobs matching and skills hub.
In addition, $384 million will go towards funding the Whyalla Steelworks’ operations during administration. This funding is designed to ensure workers and contractors will have ongoing work at the Steelworks and will continue to be paid.
The State and Federal governments have also earmarked $1.9 billion to ensure the Whyalla Steelworks has a sustainable long-term future.
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, administrators and creditors to support a path forward.
The Whyalla site is one of only two steelworks in Australia and produces 75 per cent of the country’s structural steel. It is also the only domestic producer of steel long products.
