Whyalla Steelworks, a subsidiary of GFG Alliance, Australia's sole rail producer, has been placed into administration by the Australian government following economic difficulties. GFG, which owed tens of millions of dollars to creditors of the steelworks, including USD 15 million to SA Water, was under intense government pressure to pay its debts. Commenting on the administration, GFG Alliance President Sanjeev Gupta said the government was 'on the wrong track'.
After Whyalla Steelworks was fast-tracked through parliament, Albanese said that his country “cannot just be a quarry that exports things overseas, waits for jobs to be created, waits for value to be added, and then import it back” emphasizing that the purpose of state support was to protect the jobs created by Whyalla Steelworks and to invest nationally. Administrator KordaMentha said that keeping Whyalla Steelworks open would directly and indirectly protect approximately 4,000 jobs.
“Now that the steelworks is no longer under the control of GFG, the state government can partner with the federal government and make the long-term investments necessary to secure the future of Whyalla and Australian steel making” South Australian government Premier Peter Malinauskas said.
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