The Australian federal government has announced that, together with the South Australian state government, it is working on a multi-billion-dollar funding package to save the Whyalla steelworks, to support local jobs and to attract more investment into the Australian steel industry.
Accounting for 75 percent of the domestic structural steel production, the Whyalla steelworks is considered to be vital for the Australian steel industry. It is not only one of two domestic steelworks, but also the only long steel producer in the country. It provides steel for the construction of Australia’s main infrastructure including railways, bridges and transmission network. Additionally, the Whyalla steelworks also has importance in terms of green steelmaking.
Therefore, government funding worth A$2.38 billion will be provided for several purposes. A$100 million will be allocated for creditor payments and infrastructure upgrades. Moreover, A$384 million will be used to fund the steelworks’ operations, ensuring workers and contractors will have jobs and will get paid. Ultimately, A$1.9 billion will be for upgrades and new infrastructure under a new owner, ensuring the steelworks has a sustainable, long-term future.
