Whyalla Steelworks Faces Administration Amid $1.34B Debt

The Whyalla steelworks, formerly owned by OneSteel Manufacturing, has been placed into administration by the South Australian government due to severe financial issues, including a daily loss of $1.5 million. Administrators KordaMentha revealed the steelworks' liabilities amount to $1.34 billion, with significant debts owed to GFG Alliance, the South Australian government, employees, and trade creditors. The financial strain was exacerbated by operational challenges, such as blast furnace shutdowns and working capital constraints. Although GFG Alliance, owned by Sanjeev Gupta, still believes in the strategic value of Whyalla, the administration aims to stabilize operations and explore potential sale options. The state government has injected $100 million to keep the steelworks running during this period. These developments highlight the significant economic impact on Whyalla, a town heavily reliant on the steelworks for employment and industry.