The Australian and South Australian governments have announced that they have committed to provide a further A$275 million to continue operation of the Whyalla Steelworks of UK-based steelmaker Liberty Steel Group in Australia as it transitions to new ownership with a plan to deliver long-term sovereign steelmaking. This investment aims to maintain safe operations, secure jobs, and prepare the plant for a sustainable future as it moves toward new ownership.
This new funding is an addition to the A$2.38 billion funding package announced in February, as SteelOrbis previously reported.
The funding ensures that administrator KordaMentha, Australia-based advisory and investment firm, can continue safe and stable steelmaking operations, pay employee wages and key suppliers, undertake urgent and critical maintenance, and prepare the business for a successful sale to a viable long-term owner. The funding also gives KordaMentha and sale advisor 333 Capital the time and stability needed to progress negotiations with potential buyers, maintain value and reliability of the asset during transition and attract serious bidders committed to modern steelmaking.