Whyalla Steelworks Enters Administration Amid Debt Crisis

The South Australian government has placed the Whyalla Steelworks into administration due to its inability to repay significant debts, following the passage of special legislation. Owned by GFG Alliance, the facility is crucial for Australia's steel production, supplying 75% of the country's structural steel and employing about 1,000 people. Premier Peter Malinauskas emphasized that this intervention was essential to secure the long-term future of the steelworks and protect local suppliers facing financial hardship. GFG Alliance, which acquired the steelworks in 2017, has struggled with mounting debts, particularly after the collapse of its main financier, Greensill Capital, in 2021. The situation raises concerns about Australia's economic sovereignty, as the Australian Workers' Union warns that reliance on imports from China for steel could become inevitable. Plans for a hydrogen-based steel plant at the site are now in jeopardy due to the financial turmoil.