Major SA projects left in limbo from local steel fabricator SA Structural collapse

Major projects including school upgrades and the $715m Gawler train line electrification face delays following the collapse of local steel fabricator SA Structural.

SA Structural was supplying steel to a number of school upgrade projects including a new science and technology building at Glenunga International High School. Artwork: supplied by the Education Department

Major projects including the $715m electrification of the Gawler train line and multimillion dollar school upgrades face uncertain delays following the financial collapse of local steel fabricator SA Structural.

Administrator Andre Strazdins from BRI Ferrier is yet to reveal the number of projects left in limbo following his appointment last week, and whether the company would fulfil any or all of its existing steel supply contracts.

The Gawler line upgrade was one of the company’s biggest contracts at the time of its demise, while it was also supplying steel to a number of school upgrade projects including a new science and technology building at Glenunga International High School.

It was revealed in December that the budget for the Gawler line upgrade had blown out by $100m to $715m following a series of delays.

On Tuesday, Transport Minister Corey Wingard said it was too early to tell what impact SA Structural’s collapse would have on affected government projects.

“We’ll work very closely with those administrators to work our way through it,” he said.

“There are contingencies built into contracts, so we’ll work with them and when we have more information we’ll be able to give you more detail.

SA Structural director Michael Mangos. Picture: Dean Martin

“I know a big percentage of the Gawler electrification work has been done but we’ll work with the administrators … as we push ahead with those projects.”

It is understood close to 200 employees are affected by SA Structural’s collapse, while amounts owed to creditors are yet to be revealed.

Treasurer Rob Lucas on Monday confirmed the company had approached the State Government last year in a bid to secure financial support in the wake of COVID-19, but the appeal was rejected.

“There can be no criticism of any lack of flow of government tendering, activity or work in relation to any problems that they’re now facing, because they’ve had and have got a whole series of very significant contracts,” he said.

“During COVID they did reach out to the Government for assistance but the advice I got, the position I took, was that it wasn’t really a COVID-related problem they were confronting.

“It wasn’t really for the taxpayers of South Australia to pay for any significant issues that they might have got themselves into as a result of their own management decisions prior to COVID.”

SA Structural was established by Adelaide businessman Michael Mangos in 2003, providing structural steel for mining projects, infrastructure works, shopping centres, schools and hotels.