South Australia Takes Control of Whyalla Steelworks Amid Financial Crisis

The South Australian government has placed the Whyalla Steelworks, owned by Sanjeev Gupta's GFG Alliance, into administration due to its deteriorating financial state and significant debts. Premier Peter Malinauskas cited a loss of confidence in GFG's ability to secure necessary funding, prompting the appointment of Korda Mentha as administrator to explore options for the business's future, including a potential sale. The state government aims to stabilize operations and ensure the steelworks, which employs approximately 1,000 people, can continue functioning while addressing its debts, including tens of millions owed to the government and local creditors. The move may also affect plans for a $600 million Hydrogen Jobs Plan, aimed at modernizing the steelworks for low-emission production. The situation reflects broader challenges GFG has faced since the collapse of its financier, Greensill, in 2021. Malinauskas emphasized the importance of securing the steelworks' future as a critical economic infrastructure for the state.