The business has been placed under administration in an attempt to salvage the operations.
The South Australian Labor government has placed OneSteel Manufacturing Pty Ltd, the owner of Whyalla Steelworks, into administration, citing concerns over financial stability.
The state has appointed KordaMentha as administrator under section 436C of the Corporations Act 2001, with the hopes of stabilising operations and finding a potential new owner.
The administrator will investigate all available options to ensure the continued operation of the steelworks while paying all debts incurred during the period of administration.
The move follows months of uncertainty, with Premier Peter Malinauskas stating that GFG Alliance, the parent company of OneSteel, had failed to meet its financial obligations.
“For months, my government has been carefully planning a strategy to address the challenges unfolding at the Whyalla Steelworks,” Malinauskas said.
“We gave GFG every opportunity to make good on its promises. It has failed to do so.”
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Former MP Bill Shorten (L) talking to Liberty OneSteel owner Sanjeev Gupta (R) at the steel works in Whyalla in South Australia, May 1, 2019. AAP…
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