Clock’s ticking on Arrium deal

THE next four weeks are crucial to determining whether the Whyalla steelworks survive and 1100 jobs can be saved.

Arrium OneSteel MD & CEO, Andrew Roberts at Hummock Hill in Whyalla. Picture Andrew Melville-Smith.

THE next four weeks are crucial to determining whether the Whyalla steelworks survive and 1100 jobs can be saved.

The terms of a $1 billion debt deal between Arrium and private equity firm GSO Capital Partners must be agreed by April 5 by the company’s lenders, which are owed about $2 billion.

Any government funding package would need to be determined by this date to give the steelworks the greatest chance of remaining open.

Arrium still needs to find another $60 million in savings or secure funding to upgrade sections of the steelworks to make it more efficient.

Prime Minister Malcolm Turnbull is set to visit Whyalla today in a flying visit but it is unclear if he will announce measures to help save the local steel industry.

SA Treasurer Tom Koutsantonis said the State Government was willing to invest in an assistance package for Arrium but the Commonwealth needed to come in as a partner.

He said April 5 was the day a definite plan was needed to ensure the steelworks stayed open.

“We are at the stage where the rubber needs to hit the road,” Mr Koutsantonis said.

“This is too big of an issue for a state with 1.6 million people to solve.

“We need the Federal Government to come on board and be a willing partner because (saving the steelworks) will benefit the whole country.”

Mr Koutsantonis would not detail what level of support the State Government was willing to provide Arrium.

“It can’t be just a sugar hit,” he said. “Any deal needs to ensure the long-term viability of the steelworks.”

Premier Jay Weatherill met Mr Turnbull last night to push the case for federal funding to save Whyalla’s major employer.

Former steelworker and Australian Workers’ Union delegate Colin Shooter, 63, took a redundancy package last month.

He challenged Mr Turnbull to detail his plan to keep jobs in Whyalla.

“If the steel mill goes, then that’s it,” Mr Shooter said.

“Turnbull is always saying ‘there’s never been a more exciting time to be an Australian’ but he needs to tell us what have we got to look forward to in Whyalla.”

AWU Whyalla branch organiser Scott Martin said the Federal Government needed to buy more local steel and crack down on cheap Chinese imported dumped into Australia.

“The future of Whyalla depends on something being done,” he said.

Mr Martin said workers were being asked to bear the brunt of the cost savings.

“We would recommend to our members to take a five or 10 per cent pay cut if the company can guarantee that it will save jobs now and into the future but they can’t even give us that,” he said.

Mr Martin said major upgrades to the plant were needed to ensure it remained competitive.

Arrium did not respond to The Advertiser last night but the company has previously stated it has not reduced its maintenance budget in recent years.