Sanjeev Gupta writes letter to SA: Whyalla, I can’t wait to be back

Sanjeev Gupta has written an open letter to SA, saying he cares deeply about continuing the strong steel manufacturing legacy of his “spiritual home” Whyalla.

UK businessman Sanjeev Gupta is personally reassuring Whyalla’s people about its steelworks’ viability, saying he cares deeply about building upon the manufacturing legacy of his “spiritual home”.

The tycoon has written an open letter to Whyalla, provided exclusively to the Sunday Mail, as he battles a global debt storm that is threatening the future of his vast and complex empire, including the steelworks’ parent firm GFG Alliance.

Sanjeev Gupta at the Whyalla Steelworks. AAP Image/David Mariuz

In the letter, Mr Gupta says he remains committed to the Greensteel transformation project to transform Whyalla into the world-leading carbon-neutral steel producer.

“Whyalla has long played an important role in Australian manufacturing, providing high quality steel that has shaped much of the country’s infrastructure for many decades,” Mr Gupta says.

READ HIS LETTER HERE

“I care deeply about continuing this legacy and building upon it to ensure a sustainable future for industry and society.

“ … Whyalla will always be a special place for me; I have said before it is my spiritual home. I’ve made many friends since I acquired the business (in 2017), both in the community and among our workforce.

“And from the beginning what I have admired most is their resilience.”

Mr Gupta says he cares deeply about his people, their futures and communities and that work to refinance the business “away from (collapsed lender) Greensill’s creditors” was a tireless pursuit.

Sanjeev Gupta’s victory march in Whyalla on September 1, 2017 when he was officially handed over the steel and mining operations across Australia. (AAP Image/David Mariuz)

He reiterates that multiple offers of refinancing had been received from large lenders for the Whyalla and Tahmoor coal businesses and says “we are now in advanced stages of due diligence”.

Greensill creditors on Tuesday lodged an application in the NSW Supreme Court to liquidate the two businesses.

“Meanwhile, our team is continuing to do what we do best; supplying high-quality, Australian-made steel to projects which are critical to nation building,” Mr Gupta says.

GFG Alliance is maintaining operations as usual.

“We’re benefiting from strong tailwinds in steel and iron ore markets and high demand for our products in Australia, and our refinancing discussions are progressing very positively.”

“I remain committed to our Greensteel transformation vision. And I can’t wait to be back in Whyalla again with you all.”

The Whyalla steelworks operation is supplying more than 450,000 tonnes of metal annually to multi-billion dollars worth of projects around the country, including the $16.3bn WestConnex motorway construction in Sydney, $6bn-plus Barangaroo South precinct development, the $5.4bn Cross River Rail Brisbane project and the proposed $100m Whyalla High School.

Total production capacity of the plant is about 1.2m tonnes per year.

Flinders University’s Australian Industrial Transformation Institute director John Spoehr earlier this week said steel making is “foundational to building national sovereign capability”, more so post the COVID-19 pandemic, and that the nation must be prepared to “consider nationalising” the Whyalla operations.

Approximately 70 per cent of the structural steel used in Australia is sourced from the Gupta’s Whyalla steelworks and InfraBuild businesses.

Besides the 1800 jobs at the steelworks, the operations also supports jobs at 600 suppliers – 500 across the state and 110 in Whyalla.

State and federal governments have confirmed there are discussions about contingency plans, including short-term loan options.

Questions continue to be raised about the quality of invoices that are at the heart of Mr Gupta’s complex financing arrangements with Greensill Capital, founded by Queensland businessman Lex Greensill.

Greensill creditor, Credit Suisse, is seeking to liquidate several of its steel and commodity businesses in UK and Australia, including Whyalla.

On Friday, Mr Gupta said he was “ready to change”, but blasted the aggressive tactics of creditors as “dangerous and cavalier”, threatening thousands of jobs in his global empire.

“I’m ready to change. So is the GFG Alliance,” he said.

“We understand that the way we used to finance our operations needs to be overhauled, and we will address our challenges head on.

“We want to continue to improve governance and transparency.

“We also understand that we have a responsibility to our debt holders.

“But at this time of crisis, we need cool heads and collaboration, not dangerous and cavalier behaviour.”