- Whyalla Steelworks to hand over to managers
The Whyalla Steelworks in South Australia is about to collapse, with tens of millions of dollars that owe creditors and a maximum of 1,000 jobs on the line.
The South Australian government has announced that the production of Onesteel will be placed in administration, after a Urgent meeting to decide the future of the factory on Wednesday morning.
Kordaamentha has been appointed as managers of Onesteel, which is part of the GFG group of the British billionaire Sanjeev Gupta.
During the meeting, the state government adopted legislation so that it can act on the debts it is due by GFG Alliance, which owns the factory that produces steel used in railways.
The relocation is the start of an offer from the SA government to grab control of the steel factory and to place them in administration.
Prime Minister Peter Malinauskas would give a press conference on Wednesday afternoon.
The Troubled Steelworks is a large employer in Whyalla, a city northwest of Adelaide with a population of 22,000 people.
It has operated losses for months and the SA government had become more concerned that the GFG alliance was unable to repay its debts.
Mr. Gupta, took over the Steelworks in 2017 with promises to turn it into a 'green steel' factory.
The future of the plant is in the balance, with Prime Minister Peter Malinauskas who gives a press conference on Wednesday afternoon
Whyalla makes the only steel used in the railways in Australia, together with steel beams that are used in high -rise buildings.
The Australian strategic policy institutions regards its possible downfall as national security problems.
The last development takes place only a week after the US President Donald Trump had announced that 25 percent rates would apply to steel and aluminum exported to the United States, without exemption even before Australia.
Whyalla is one of the only steel producers in Australia, together with Bluescope at Port Kembla in Wollongong.
The company, led by the British billionaire Sanjeev Gupta (photo), took over the SteelWorks in 2017
