Sanjeev Gupta’s Ferretti International Ottoway collapses, 150 jobs gone

Another domino in embattled billionaire Sanjeev Gupta’s steel empire has fallen over, with administrators seizing control of a major Australian steel company.

Ferretti International Ottoway supplied the steel used in construction of Whyalla’s circular jetty. Picture: Whyalla City Council

Another domino in embattled billionaire Sanjeev Gupta’s steel empire has fallen over, with administrators seizing control of Australian steel fabrication company Ferretti International Ottoway.

The company’s collapse has resulted in more than 100 job losses across two sites at Wingfield and Whyalla, while 37 workers have been retained to complete several major projects before the company is wound down.

Mr Gupta’s GFG Alliance took over the Ferretti business at the start of 2023 as part of its acquisition of the fabricator’s parent company, Singapore-based Aartee Group.

The Whyalla steelworks was a “key customer” of Ferretti, according to administrator Michael Brereton from William Buck, and the future of the company had been “in jeopardy” since administrators were appointed to steelworks owner OneSteel Manufacturing in February.

The Whyalla steelworks was a major customer of Ferretti International Ottoway. Picture: Brett Hartwig

A report lodged with the corporate regulator following OneSteel’s collapse shows Ferretti owes the steelworks owner $9.4m as part of a related party loan between the two companies.

“FIO’s (Ferretti) key customer was OneSteel Manufacturing Pty Ltd (OSM), a related entity within the GFG Alliance Australia group,” Mr Brereton said.

“We undertook an urgent assessment of the company’s business after our appointment … and made the decision to continue trading in a limited capacity with the primary goal to maximise the returns to creditors.

“In this regard we are focusing on the completion of a number of remaining projects before winding down the operations of FIO.

“We have retained 37 staff, both full time and casual, to assist with completion of some major projects. We terminated 43 active staff and formalised the cessation of employment for a further 66 that had either recently resigned or were otherwise not actively employed.

“We are aware that a number of staff that were made redundant have taken up job opportunities already in other roles in related industry in Whyalla.”

Ferretti has specialised in engineering and steel fabrication projects for mining, oil & gas, defence and other heavy industry, counting BHP and ASX-listed Central Petroleum among its major customers.

It fabricated equipment used at the Whyalla steelworks, and also supplied the structural steel and balustrading for Whyalla’s circular jetty which opened in 2020.

The company’s most recent financial report filed with ASIC shows it made a $5.4m loss in 2023 following a $2.4m loss in 2022.

A GFG Alliance spokeswoman said the administration of OneSteel had resulted in a “significant downturn of Ferretti’s revenue and operations”.

“Following the appointment of administrators to OneSteel, LPMA (Liberty Primary Metals Australia) continued funding Ferretti to sustain jobs as we waited for substantive orders from OSM’s administrator. However, OSM’s administrators cancelled Ferretti’s Whyalla workshop lease on May 19, 2025,” she said.

“Ferretti is no longer in a position to meet its operational costs and as a result of the lease cancellation GFG has no option but to wind down operations of Ferretti.

“Ferretti is a local employer and has played a significant role in supporting the Whyalla steelworks. Its employees have valuable skills and while the continued employment of the Ferretti workforce is a matter for the administrators, it is hoped that some employees will transfer to OneSteel.”

She said Ferretti’s collapse would have “no operational impact on the rest of GFG Alliance”.

Mr Brereton said it was too early to provide an estimate of the amounts owed to creditors. The first meeting of creditors will be held on June 2.

Originally published as Sanjeev Gupta’s Ferretti International Ottoway collapses, 150 jobs gone