The administrator, KordaMentha, has today announced that efforts to restart Whyalla Steelworks blast furnace over recent months have been unsuccessful.
Years of failure to invest in the Steelworks by the previous owner has resulted in the blast furnace being beyond repair.
The Albanese and Malinauskas Labor Governments are standing with workers and acknowledge the tireless efforts of the workforce throughout this challenging period.
We recognise this announcement is deeply disappointing for many workers and their families.
Today, the Albanese and Malinauskas Governments are announcing a joint $10 million support package to assist Whyalla workers, their families and the broader Whyalla community affected by today's announcement.
A dedicated workforce transition response has been mobilised to help people move into new employment, build new skills and stay connected to services.
The Whyalla Worker Transition Centre has been established at the TAFE SA Whyalla Campus, allowing workers to access in-person advice and services.
The support includes:
- Personalised career advice and planning
- Employment and job search assistance
- Training, upskilling and reskilling opportunities
- Connections to local job opportunities
- Financial information and support services
- Wellbeing support for workers and their families.
While the blast furnace will cease operations, significant mining, port and other activities will continue at the site.
The administrator-led sale process for the Steelworks is progressing and Commonwealth and South Australian Governments are focused on supporting a successful transition to a new owner committed to investing in Whyalla's long-term future making Australian steel.
KordaMentha is in consultation with workers and unions, to understand future workforce needs informed by proposals for the future of the steelworks.
Both governments continue to fund the administration, ensuring workers' wages continue to be paid while consultations are underway.
We recognise the importance of employee entitlements and are working to ensure workers are appropriately supported throughout the administration and sale process.
The Commonwealth and South Australian Governments have comprehensive programs in place to assist workers, families and communities affected by workforce change and structural change.
Access to available supports for workers and their families can be found at:
Commonwealth Government: https://www.dewr.gov.au/whats-next/whyalla-structural-adjustment-package
South Australian Government:https://whyallasupport.sa.gov.au/business-and-worker-support.
Quotes attributable to Minister for Employment and Workplace Relations, Amanda Rishworth:
"We know this is a difficult day for many Whyalla workers and the broader community and that is why the Albanese Government is delivering practical, coordinated and intensive support as families navigate this period of change.
"Today's announcement will have a real impact on people, which is why our focus is on ensuring workers have the support they need and no one is left to navigate this alone.
"From today, my department has staff on the ground in the Whyalla community, focussed on coordinating local support and guiding workers and families to assistance quickly.
"Information sessions, workshops and events will help people understand available employment, training, financial and wellbeing supports, plan their next steps, and engage with services in a way that suits their circumstances."
Quotes attributable to Minister for Industry and Innovation and Minister for Science, Tim Ayres:
"This is a disappointing outcome for the workers of the Whyalla Steelworks, their families and the broader community.
"The resilience and determination shown by the workforce throughout this period has been extraordinary.
"Our focus is on supporting workers now while creating the conditions for a new owner to invest in a stronger, more sustainable future for Whyalla and Australian steel making.
"The Albanese and Malinauskas Governments will continue to be there every step of the way."
Quotes attributable to South Australian Premier, Peter Malinauskas:
"This is a difficult day, but one which is inevitable. The blast furnace at Whyalla is 60 years-old and for many years has not had the investment it deserves through recent decades.
"It is only due to the Herculean efforts of the workers in Whyalla that it has survived this long.
"The future for Whyalla rests in new equipment, new capital, which is what we are achieving through the sale process.
"The State and Federal Governments are working hard to secure this through our $1.9 billion sovereign steel package, to find the right new owner with the capacity to deliver new steelmaking facilities to underpin Whyalla's long-term future.
"Our interventions in Whyalla will ensure workers affected by OneSteel's announcement will see their entitlements paid in full.
"Our economy is growing quickly with high demand for skilled labour and our joint $10 million support package will assist workers make the transition to new roles."
Quotes attributable to SA Minister for Energy and Mining, Tom Koutsantonis:
"Our intervention last year ensured the steelworks and Whyalla more broadly had a clear pathway to the future for years to come."
"We have always said however that that path would not be easy."
"The blast furnace was originally commissioned in 1965 and is at the end of its life, hastened by a lack of appropriate investment by the previous owner."
"The workers of OneSteel have done a heroic job trying to revive it, but all advice now points to the fact that it will not restart."
"As ever, the State and Federal Governments stand ready to ensure affected workers receive the entitlements and assistance they need as we transition to a new ownership that will build the new infrastructure needed to safeguard sovereign steelmaking for generations to come."
Quotes attributable to SA Assistant Minister for Copper, Steel, Critical Metals and Minerals, Lawrence Ben:
"The workers of Whyalla have shown remarkable perseverance and resilience.
"We stand with them.
"From today, we have people on the ground in Whyalla to assist those workers affected by OneSteel's announcement.
"The events of today demonstrate how crucial it was for the State and Federal Governments to intervene in the Steelworks.
"We continue to progress the sale process and look forward to further announcements in coming months."
