New Whyalla steelworks and mines jobs as administrator Korda Mentha gives OneSteel Manufacturing update
State leaders have headed to Whyalla to announce new jobs and millions of dollars in creditor payouts.
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State leaders are telling Whyalla residents to polish their resumes for 63 new full time jobs at the local steelworks and mines as the business ramps up production.
Acting Premier Susan Close was in Whyalla on Wednesday morning to announce around 100 new jobs overall had been created since administrator KordaMentha took control of the OneSteel Manufacturing business last month.
“Before our government intervened, people in Whyalla were losing their jobs, facing extreme uncertainty, and the steelworks was deteriorating,” Ms Close said.
“KordaMentha tells us these new jobs are not only much needed, they will help the steelworks to operate more efficiently and productively.”
GFG Alliance’s OneSteel Manufacturing was tipped into administration in February owing tens of millions of dollars in bills, the federal and state government stepping in to announce a $2.4bn rescue package.
Ms Close said that more than $3.5m had been now paid out to struggling creditors through government support funding including 13 businesses in Whyalla and two others in SA, among them Avid Engineering and Fabcoat Australia.
“Without this payment and the way things were looking we would not have been able to continue,” Avid Engineering owner Tony Angel said.
“Now work is starting to flow back in and we are looking to the future, growing the business back to what it used to be and looking to re-employ staff.”
A Whyalla Small Local Business Support Grant program established by the state government to throw an economic lifeline to local businesses and not-for-profits of up to $10,000 has paid out $130,000 to 13 local businesses.
Administrator Sebastian Hams told about 100 people at a “One Whyalla” meeting on Wednesday morning that extensive work was still needed at the steelworks but there were “10 to 12 reputable, interested parties” in buying the business.
“There’s been a material lack of capital expenditure and maintenance and as such the state of dilapidation of equipment exceeded our worst expectations,” he said.
The steelworks’ blast furnace stopped production to conduct urgent repairs last week but was not forced into a “cool down” mode that decimated steel output mid-last year.
Mr Hams said work was well underway to strengthen the business and the new jobs available ranged from production operator roles, to mining jobs and a crane operator.
Mr Hams said seven new staff members were already on board working in the steel products section at the steelworks.
Since the KordaMentha administrators took over, Mr Hams said production has increased to 7000 tonnes a day in the south Middleback Ranges mining operations compared to about 3500 tonnes a day.
“The blast furnace is currently running at optimal capacity producing about 2800 tonnes a day, it was really variable before that,” Mr Hams said about a key component of the steel production.
Wednesday’s meeting at the Westland Hotel Motel was attended by creditors, suppliers, union officials, steelworks and mine employees, school principals and bank managers, he said.
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Originally published as New Whyalla steelworks and mines jobs as administrator Korda Mentha gives OneSteel Manufacturing update
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