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Politics / Whyalla, SA

Whyalla's steelmaking gap could last years as potential job losses mount

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SteelPoliticsCompany NewsFederal State Issues

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  • The fate of 200 "embedded contractors" remains uncertain following the announcement 600 jobs will be reduced with the closure of the Whyalla steelworks' blast furnace.
  • About 500 workers at the South Australian regional city's steelworks will lose their jobs, along with 100 labour hire workers, administrators KordaMentha revealed on Monday.
  • The job losses have been precipitated by the demise of the steelworks' 60-year-old blast furnace — a critical piece of infrastructure that made pig iron, which was then converted into steel.
  • While the government yesterday announced various support measures for workers, Mr Stone said there were families who "may have to think about relocating" — but added that there were other opportunities in the region and South Australia's north more broadly, including with BHP.

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The fate of 200 "embedded contractors" remains uncertain following the announcement 600 jobs will be reduced with the closure of the Whyalla steelworks' blast furnace.

Two bidders remain in the running to buy the steelworks, while a third company retains its right of last offer.

About 500 workers at the South Australian regional city's steelworks will lose their jobs, along with 100 labour hire workers, administrators KordaMentha revealed on Monday.

The future is unclear for another 200 "embedded contractors" employed by external companies to work at the steelworks, potentially taking the total number of initial job losses to about 800.

SA Premier Peter Malinauskas said it was necessary to "exercise a degree of caution" around that figure, because some of the contractors had work elsewhere.

The job losses have been precipitated by the demise of the steelworks' 60-year-old blast furnace — a critical piece of infrastructure that made pig iron, which was then converted into steel.

While the furnace has been offline since April, its long-term problems date back at least several years and KordaMentha said it was no longer feasible to attempt to restart it.

While the government yesterday announced various support measures for workers, Mr Stone said there were families who "may have to think about relocating" — but added that there were other opportunities in the region and South Australia's north more broadly, including with BHP.

Journalist and author Paul Barry — whose book The Big Steal details the unravelling of the business empire of former Whyalla steelworks owner Sanjeev Gupta — said he thought a two-year time frame was unlikely.

Shortened to 1 minute of reading, this version reads 3.7 on the Niral Score.

You are reading our version, not theirs. This is ABC News (Business)'s report shortened to its most important sentences, in plainer words, with verdicts and loaded words taken out. Plain description stays, and so do adjectives that carry a fact, such as "former" or "federal". The reporting, the facts and the quotations are theirs — quotations are never edited — and the indicators beside it measure this version. Hover or tap Adjectives to see every one left in the text.

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ABC News (Business)as they published this story 6.5 5 78 30.5
Mundane Readneutralized from ABC News (Business) 5.2 5 78 30.5

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