Sanjeev Gupta plans mega steel plant for Whyalla

Billionaire industrialist Sanjeev Gupta, backed by Chinese investors, plans to build one of the world’s largest steel plants in Whyalla.

British billionaire industrialist Sanjeev Gupta, backed by heavyweight Chinese investors, plans to build one of the world’s largest steel plants in Whyalla, 380km north of Adelaide.

Flanked by Scott Morrison, Bill Shorten and South Australian Premier Steven Marshall at this morning’s announcement, Mr Gupta said construction of the “next gen mega steel plant” would follow a $600m upgrade of the existing facility, which Mr Gupta’s GFG Alliance brought out of administration 15 months ago.

The initial upgrade would see steel production rise from around one million tonnes annually to 1.8m tonnes within three years, Mr Gupta said.

The new plant, which would be built by the China Metallurgical Group Corporation, would be capable of producing 10m-plus tonnes of steel a year.

A $40m feasibility study will now be undertaken.

“Our cutting-edge transformation plans for our existing steel plant are just the beginning of what GFG Alliance has in store for the region,” Mr Gupta said.

“Utilising almost perfect local conditions — our own infrastructure including a deep-sea port; rich local resources; and unrivalled community passion — we now plan to build a new steel plant, one of the world’s largest, right here in Whyalla.”

Mr Gupta said the new plant would focus on production of semi-finished steel — slabs, blooms and billets.

The products would be exported to downstream operations in key strategic and growing markets around the world.

“Thousands of job opportunities will be created throughout the construction phase and from the plant’s ongoing operations,” Mr Gupta said.

“This will see a new generation of steelmakers proudly competing on the world stage, and reflects our desire to transform Whyalla into both an Australian and global powerhouse of industry for generations to come.”

The future of Whyalla looked bleak when former steelworks operator Arrium, crippled by debts of more than $4bn, went into administration in April 2016.

However, with a host of revitalisation projects planned, including one gigawatt of renewable energy projects, Mr Gupta said Whyalla’s population would likely increase from its current level of 22,000 to 80,000 within two decades.

Also announced were plans for a $45m, 4.5 star hotel on the city’s foreshore, to be developed by the Allegra Group, a $145m horticulture development — backed by Chinese interests — and a $6m organic recycling business.

The Prime Minister lauded Mr Gupta’s ambition, while also promoting the Coalition’s economic credentials.

Mr Morrison also hinted at government funding for some of Mr Gupta’s projects.

“He hasn’t come here asking for anything, but at the same time, we will work closely with him as he brings forward their plans and their proposals,” Mr Morrison said.

“This is the turnaround state and this is the comeback city in Australia when we’re talking about Whyalla.”

Mr Shorten said a Labor government would strengthen anti-dumping measures.

He also promised to source Australian steel for defence projects and rail upgrades.

“My vision is that this is a country that not only digs up stuff and ships it overseas, but we dig it up here, manufacture it here, and we keep the profits and jobs at home, where they belong,” Mr Shorten said.

Centre Alliance Senator Rex Patrick said all levels of government must ensure the maximum use of Australian content and workers.