The South Australian Parliament swiftly enacted legislation to place OneSteel Manufacturing, the owner of the Whyalla steelworks, into administration as part of the GFG Alliance led by Sanjeev Gupta. In response to this crisis, a $2.4 billion support package was announced, which includes $100 million for immediate assistance, $1.9 billion for future investments, and $384 million aimed at stabilising operations. Prime Minister Anthony Albanese stated that the initiative demonstrates confidence in Whyalla, emphasising its importance for job security and future growth.
The proposed funding involves deferring $50 million originally allocated for the Hydrogen Jobs Plan to prioritise the steelworks. Whyalla steelworks is a crucial facility, supplying 75% of Australia’s structural steel and employing about 1,100 workers, with additional indirect job support for over 2,000 people. South Australian Premier Peter Malinauskas clarified that the package is not a bailout for Gupta or GFG but rather a move to ensure the sustainability of steel production in Australia. KordaMentha has been appointed as the administrator, tasked with finding a new owner while ensuring no job losses occur during the transition. Unions welcomed the initiative, expressing optimism for the future of the steel industry in Whyalla.