Premier Peter Malinauskas releases statement on the future of the Whyalla steelworks

Premier Peter Malinauskas has released a strongly-worded update on the future of the Whyalla steelworks. Read the full statement.

Premier Peter Malinauskas has revealed his government’s extraordinary bid to seize control of the Whyalla steelworks crisis.

Ahead of a dramatic and lengthy press conference on Wednesday afternoon, detailing the situation, he released a statement.

Premier Peter Malinauskas visited Whyalla on Monday ahead of Wednesday’s big announcement. Picture: Brett Hartwig

PREMIER’S FULL STATEMENT ON WHYALLA STEELWORKS

“For months, my government has been carefully planning a strategy to address the challenges unfolding at the Whyalla Steelworks.

Throughout that period, we gave GFG every opportunity to make good on its promises and to bring creditors back into terms. It has failed to do so.

So today, we have acted.

GFG is no longer running the Whyalla Steelworks and associated mines.

The South Australian Government has intervened.

The steelworks is now in the hands of an administrator, who will stabilise operations and explore a possible sale to a new owner.

This is a significant step, and one we do not take lightly.

But it is a necessary one to secure the long-term future of Whyalla.

There is an economic opportunity in the Upper Spencer Gulf that must be realised.

We have received advice that the steelworks is being run into ground to the extent that it may become irredeemable.

Importantly, it’s not just the steelworks itself – it’s a vast number of local suppliers, small businesses owned and operated by South Australians, whose debts remain unpaid, whose revenue has evaporated, and whose livelihoods are at stake.

Only an intervention of this nature will protect the steelworks and its creditors.

During the administration workers and contractors will continue to do their job and will be paid with the benefit of a government guarantee.

KordaMentha is an experienced administrator with a solid track record of ably operating the Whyalla Steelworks.

Later today, I will be travelling to Whyalla, where I expect to make further announcements about my government’s steadfast commitment to support the people of Whyalla and deliver the industrial transformation required to realise the economic opportunity in the Upper Spencer Gulf.

The parliament was today Team South Australia. I want to thank all Members for getting this done.”