GFG chief Sanjeev Gupta breaks silence on Whyalla steelworks’ future

Embattled steel magnate Sanjeev Gupta has spoken out about his plans for Whyalla steelworks and paying creditors.

Embattled Whyalla steelworks owner Sanjeev Gupta says his firm is “vigorously finalising new financing” in a “key plank” to restore normal operations but the process “has taken a bit longer than anticipated”.

In a statement issued to The Advertiser through his GFG Alliance business, Mr Gupta acknowledges the steelworks is “currently navigating one of the most challenging periods in its history” but declares: “Rest assured, my commitment to Whyalla will not be shaken.”

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Mr Gupta says revenue, through additional steel sales, is gradually increasing and losses have been cut by more than 30 per cent since the blast furnace restarted in early January.

He says this “continuous ramping-up is critical” and GFG’s Whyalla business can be successful only if “all stakeholders work together to not lose ground”.

GFG chief Sanjeev Gupta at Whyalla steelworks in 2017. AAP Image/David Mariuz

Mr Gupta says this is vital to paying creditors, which include contractors owed significant sums, the state government owed “tens of millions” of dollars in royalties and at least $15m in water bills.

“While we still have considerable work ahead, these clear improvements are vital as we work to catch up with our creditors — who have shown remarkable patience — and to whom we extend our deepest gratitude,” Mr Gupta says.

“To expedite our recovery, we are vigorously finalising new financing. Although this process has taken a bit longer than anticipated, I remain confident of its delivery.

“This funding, along with the important gains already made through the ongoing implementation of our Back to Black initiative, is part of our unshakeable path to creating tangible financial headway with our creditors.

“It is a key plank to achieve normality again and realise our future ambitions.”

GFG last November started a Back to Black taskforce to oversee the blast furnace restart and stabilise operations, aiming to restore the steelworks to profitability after Mr Gupta in October said the steelworks and iron ore operation was being propped up to the tune of $1m per day.

Sanjeev Gupta in his Adelaide office in October, 2024. Picture Mark Brake

Mr Gupta vows this plan will allow GFG’s steelworks to “emerge from this uncertain period stronger than before” and says he is optimistic steel markets will start recovering this year after a long downturn.

In a partial response to Premier Peter Malinauskas telling parliament on February 4 of his “grave concern” about the financial challenges facing GFG in Whyalla and its ability to fund the steelworks’ future, Mr Gupta insists he still aspires to meet the government’s vision of producing “green” steel using carbon-free energy.

“Our conversations around future energy options to enable our green steel aspirations are ongoing, and we remain engaged with the State Government,” he says.

“Our focus is on practical, sustainable steps that support both our aspirations and the economic future of the business.”

Premier Peter Malinauskas and Treasurer Stephen Mullighan await an early-morning flight to Whyalla on Tuesday. Picture: NewsWire / Dean Martin

Mr Gupta insists enormous effort is being made to return the blast furnace to full operation as production was stabilised and accelerated.

“The GFG business in Whyalla is currently navigating one of the most challenging periods in its history, and we understand the anxiety this creates for our people and stakeholders about the future,” he says.

“Despite these challenges, rest assured my commitment to Whyalla will not be shaken. GFG has invested vast sums of money to keep Whyalla going and Whyalla will remain our highest priority.

“The prolonged disruption to the operation of the blast furnace has taken a toll, but I want to assure you that we are making meaningful progress.”