GFG Alliance, the parent company of the international industrial and metals group Liberty House, has announced the final concept plan for the transformation of the Whyalla operations in South Australia, following the significant and detailed work undertaken by GFG after the successful acquisition of the former Australian mining and materials company Arrium’s businesses on September 1, 2017.
The transformation plan is expected to structurally improve the operational and financial performance of the Whyalla Steelworks and significantly reduce the unit cost of steel production, ensuring the steelworks can be competitive throughout the economic cycle. Accordingly, the investments as part of the transformation plan include improvements in energy efficiency at the steelworks, modernization and capacity upgrade investments and investments to increase production at the steelworks by approximately 50 percent to 1.5 million mt per year, also widening the product offering and opening up high-margin domestic and export markets including the global operations of GFG.
GFG estimates the capital cost of the transformation plan to be approximately $1 billion. The company also expects that this will be financed through a combination of funding sources, including GFG.